Mobile money has improved the efficiency of money transactions
A Lecturer at the Akenteng Appiah-Menka University of Skills Training and Entrepreneurial Development (AAMUSTED), Richard Apau, has described as “counter-productive” government’s proposal to subject all electronic transactions to a 1.75 percent tax.
Richard Apau says the research which informed government’s decision to introduce the Electronic Transaction Levy in 2022 must be taken a second look at.
“We are told they had done a research and I worry,” Mr. Apau stated on TV3‘s New Day on Monday, November 22.
“If there was a research that was supposed to have actually spoken to about 10,000 Ghanaians, I do not think 1.75 percent would be put on Mobile Money transactions.”
The adjunct lecturer at Academic City University College said most people will be forced to employ other alternatives if government’s proposal as captured in the 2022 budget is approved.
There was mixed reaction on Wednesday, November 17 when the Minister of Finance, Ken Ofori-Atta, announced a proposition for the introduction of the Levy, also known as E-Levy.
Mr Ken Ofori-Atta explained that the move is to widen the tax net and rope in the informal sector.
“A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others,” he stated on the floor of the House.
But Mr Apau, who is also a cyber security and digital forensic professional, maintained: “Look at even the telcos, those that are providing the service. Look at their service charge. They say 1% [but] it gets to a point that the 1% becomes stagnant.
“From about GH¢1,000 where they take GH¢10, even if you transfer GH¢5,000, they take GH¢10. But this 1.75 percent will mean that it is on the transaction.”
The new levy is expected to take effect from January 1, 2022 after the budget is approved.