-As Ofori-Atta’s E-Levy Scares Users
The value of mobile money transactions dropped by a whopping Ghc3.2billion in December 2021 after the Akufo-Addo government announced intent to tax savings through the E-Levy in the 2022 budget.
This is according to data from the Bank of Ghana.
According to the report, traffic on the country’s largest payment platform declined to GH¢82.9 billion in December from GH¢86.1 billion recorded in November 2021, representing a significant 3.8% decline.
In contrast, before the Finance Minister announced the introduction of the e-levy in the 2022 budget, the value of mobile money transactions had just increased to GH¢80 billion in October from GH¢71.7 billion in September – more than a 10% increase.
Again, in terms of volume, the transaction has been decreasing at an increasing rate with mobile money transfers recording 300,000 increase in December (0.75%) from November as compared to a volume of 700,000 from September to October 2021.
The declining use of MoMo means that the Akufo Addo administration is likely to fail to reap its projected GHC 6 billion annually if it imposes a 1.75% e-levy on Ghanaians. Yet, the government has widely reported that the e-levy is the only panacea for Ghana’s economic recovery at the moment.
The report confirms that Ghanaians are widely opposed to the levy which will enable the government to tax savings, a taxation form that vandalizes the fundamental principle that you do not tax savings or capital, but profit.
It is also a confirmation that Ken Ofori-Atta had misinformed the country when he claimed that he has consulted Ghanaians and Ghanaians are receptive to the e-levy.
Meanwhile, the Minority in Parliament continues to oppose the levy with the NPP government of according, said to resort all to means, including alleged bribery, to get the Minority to allow for the levy to be approved.