Over 40% Of MoMo Transactions Are Below GH¢100-Hon. Abena Osei-Asare

According to the information we gathered from thebftonline.com website, the Deputy Minister for Finance, Abena Osei-Asare, has revealed that more that 40% of mobile money transactions in Ghana are below GH¢100 per day.

According to her, data from government show that more than 40% of mobile money transactions were below a GH¢100 per day – a challenge that compelled government to waive taxes for this group.

“The majority of mobile money subscribers are low-income earners; so clearly, you see that government did some research and realised that we should exempt the GH¢100 and below,” she stressed.

The Deputy-Finance Minister made these known at the official opening of a four-day sensitisation programme for staff of the Information Service Department (ISD) across Ghana about the electronic transaction levy (E-levy)

The programme, which is under the auspices of the Ministry of Finance, aims at empowering the ISD to embark a public education campaign to sensitise Ghanaians on the importance of the E-levy. “Government feels that if you earn more, you should be in a position to put in more to help develop our nation,” Abena Osei Asare added.

The Deputy-Finance Minister, who doubles as MP for Atewa East in the Eastern Region, told the ISD staff that customers of commercial establishments who make payments to purchase goods and services do not have to change their method of making payments, as there is no E-levy charge on this as well if the establishments are registered with GRA for VAT or Income Tax.

She further mentioned another reason for introducing the E-Levy was to support revenue mobilisation to tackle challenges of high unemployment, and address inadequate physical and digital infrastructure such as roads, hospital and schools.

According to the Ghana Revenue Authority, the following transactions will not warrant a 1.5 per cent tax:

• A cumulative transfer of GH¢100 made by the same person.
• A transfer between accounts owned by the same person.
• Transfers for the payment of taxes, fees and charges on the Ghana.gov platform
• Electronic clearing of cheques
• Specified merchant payments (that is, payments to commercial establishments registered with the GRA for income tax and VAT purposes)
• Transfers between principal, master agent, and agent’s accounts.

Transfers to be taxed include:

• Mobile money transfers done between accounts on the same Electronic Money Issuer.
• Mobile money transfer to a receiver on another Electronic Money Issuer [Interoperability transfer]
• Transfer from a bank account to [another person’s] mobile money account.
• From a mobile money account to [another person’s] bank account.
• Bank transfers on an instant paid digital platform.