Momo agents call on govt to review E-levy

The Mobile Money Agents Association of Ghana has renewed calls for the government to review the rates of the Electronic Transfer Levy popularly known as (E-levy).

Their concerns follow recent conversations around financial inclusion at the ongoing 3i Summit in Accra.

E-levy was introduced in 2022 as part of the government’s effort to put in measures to help its domestic revenue mobilisation.

Following several criticisms, the e-levy which was 1.75 percent was reduced to 1.5 per cent and further to 1 percent.

In an interview with Citi News, the General Secretary of the Mobile Money Agents Association of Ghana, Evans Otumfuo asserted the need for further review and expressed optimism for improving financial inclusion in Ghana.

He argued that data from the Bank of Ghana revealed higher patronage of the mobile money platforms following the reductions in rates, hence the need for the government to consider reviewing the rate.

“We are going to make a case for the government to really as a matter of urgency consider reducing the e-levy rate. Because once that is done, we believe that we are going to get more of the value, and so the e-levy should be either scrapped or finally reduced to the barest minimum,” he stated.

Evans Otumfuo also stressed that the Association’s calls for the review of the e-levy are geared towards enhancing financial inclusion, especially in this digital age.

He said, “We have always been advocating for conditions and policies that would encourage uptake of financial products and some of these policies. We believe if they are implemented, it will encourage the adoption of financial platforms and financial means of transactions.

“So, from the onset of e-levy, we strongly opposed the idea of placing a tax on mobile money with the idea that it is going to discourage the growth of the sector. Because there are a lot of consumers who may be shying away due to the cost applied on it.”