Business News of Friday, 17 September 2021
Source: www.ghanaweb.live
2021-09-17Taxation on aspects of mobile money transactions will be counterproductive – Telco Chamber
Mobile money has improved the efficiency of money transactions
• The Telco Chamber is urging government to reconsider its plan to tax MoMo transactions
• The Chamber says the move will be counterproductive as market dynamics need to first come in place
• Government earlier this year hinted of plans to tax certain aspects of MoMo transactions
Head of Research at the Ghana Chamber of Telecommunications, Derek
Read full articleLaryea has urged government not to move ahead with the taxation on mobile money transactions, according to a Citi Business report.
This comes after Ursula Owusu-Ekuful, Minister for Communications and Digitilisation had earlier hinted of governments plans to implement taxes on mobile money as part of efforts to shore up revenue.
But Derek Laryea according to the portal believes a move to place taxes on any aspect of electronic money service will be counterproductive but suggests government must allow the market dynamics to play out.
“Rather than going direct in terms of taxation, how about allowing the market dynamics to play out. This, if allowed to happen, will lead to improved efficiency, profitability and productivity. For us, as a chamber, we don’t think this is the time to discuss the matter of direct taxation of mobile money,” Laryea said this at 18th Knowledge Forum organised by the Ghana Chamber of Telecommunications.
Chief Executive of the Chamber, Kenneth Ashigbey also speaking at the same event said the mobile money agents, merchants were already paying withholding taxes on the commissions they made hence there were already being taxed.
“There are various ways by which mobile money is taxed. There is the Corporate Income Tax that is paid. The agents and merchants also pay withholding taxes on the commissions that they earn. By virtue of the fact that you have mobile money running, you have businesses who leverage the platform and also pay taxes. We definitely think that taxing mobile money directly is like taxing the cash in your pocket,” Ashigbey explained.
Meanwhile, government has already began stakeholder engagements with mobile money agents, merchants in the country ahead of a possible introduction of taxes on mobile money transactions.
