Gov’t To Tax Momo Transactions – Ofori Atta

 Gov’t To Tax Momo Transactions – Ofori Atta

The Finance Minister, Ken Ofori Atta, says government has decided to place a levy on all electronic transactions.

Speaking on the floor of Parliament today Wednesday 17th November 2021, Finance Minister, Ken Ofori Attah stated the tax will widen the tax net and rope in the informal sector.

He added that Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except inward remittances, which will be borne by the recipient.

According to Ofori Atta, the total value of transactions for 2020 was estimated to be over GHS 500 billion as compared to GH¢78 billion in 2016 while total mobile money subscribers and active mobile money users have grown by an average rate of 18% and 16% respectively between 2016 and 2019.

“After considerable deliberations, Government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the “Electronic Levy or E-Levy.”

“Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except inward remittances, which will be borne by the recipient.” – Ken Ofori Atta told Parliament.