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Tax on MoMo: Government introduces Electronic Transaction Levy

The Minister of Finance Ken Ofori-Atta

Finance Minister, Ken Ofori-Atta, has announced the introduction of a 1.7% phone transactions levy payable by mobile money users per transaction above GHS 100.

According to the Minister, the new levy will compensate for the abolishment of road tolls.

Mr. Ofori-Atta noted during his delivery that government has scrapped the amount of money being paid by motorists as tolls on public roads in the country.

Explaining the rationale behind the scrapping of the road tolls, the Minister said the revenue that accrues to the state for the construction and maintenance of roads is inadequate and hence, government has to look elsewhere to equitably generate revenues for the construction and maintenance of our roads.

“Over the years, the tolling points have led to heavy traffic on our roads and lengthened travel time from one place to another, impacting negatively on time and productivity. The congestion generated at the tolling points, besides creating these inconveniences, also leads to pollution in and around those vicinities.

“To address these challenges, Government has abolished all tolls on public roads and bridges. This takes effect immediately when the Budget is approved. The toll collection personnel will be reassigned. The expected impact on productivity and reduced environmental pollution will more than off-set the revenue forgone by removing the tolls,” he added.

The Finance Minister also told Parliament that Ghana is expected to rake in a total revenue of GHS100.5 billion in 2022.

“Mr Speaker, total revenue and grants for 2022 is projected to rise above GHS100 billion for the first time – GHS100.5 billion, equivalent to 20 per cent of GDP up from a projected outturn of GHS70.3 billion, equivalent to 16 per cent of GDP for 2021”, Mr Ofori-Atta said.

He added: “Domestic revenue is estimated at GHS99.5 billion and representing an annual growth of 44 percent over the projected outturn of 2021”.

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Meanwhile, in a swift response to the Finance Minister’s announcement, Member of Parliament for Ningo-Prampram, Sam George said the move was an “extremely desperate and clueless” display by the government.

He twittered:

 

 

–Pulse Ghana–

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