Contrary to claims by Nana Addo Dankwa Akufo-Addo government that the E-levy would create jobs and boost entrepreneurship, Money Mobile Agents across the country are living in fear of losing their businesses.
President Akufo-Addo and his Finance minister Ken Ofori Atta have presented a budget to parliament that they claim would create jobs and drive entrepreneurship through a program called YouStart.
To fund the YouStart, President Akufo-Addo is proposing to introduce a levy on all electronic transactions with Mobile money sector the main target.
The levy has been sold as the solution to the major challenges confronting the economy but the spine of the mobile money industry says the E-levy would crush their businesses.
Vice President of Mobile Money Agents Association Augustine Kojo Afful said they are already seeing a decline in their operations as some customers are shying away from their services out of fear of being taxed.
The Bank of Ghana revealed that mobile money transactions declined by ¢3billion in 2021.
Augustine Kojo Afful says the government needs to learn from their own experience when mobile money interoperability was introduced at a fee of 1.5% and the surge in transactions they saw when that fee was reduced to 1%.
He told Sena Nombo on the Gold Power Drive that banks and other financial institutions who have invested into their businesses have started raising questions about the security of their investments while others have started pulling out their support.
Mr. Afful said jobs are at risk as mobile money agents employ thousands of Ghanaian youth who would lose their jobs if the levy is introduced and mobile money customers boycott mobile money transactions.
Mr. Afful said the E-levy would end up taxing the money that is running the mobile money ecosystem.
He said government would also lose the 10% withholding tax mobile money agents pay monthly in addition to other taxes.
Story: Sena Nombo/Radiogoldlive.com
