Mobile money (Momo) vendors in the Keta Municipality of the Volta Region are celebrating President John Dramani Mahama’s decision to assent to the bill abolishing the Electronic Transfer Levy (E-Levy) and betting tax.
The vendors believe that the move will facilitate successful and smooth transactions, which would be free from the challenges posed by taxes.
The E-Levy, introduced by the previous President Akufo-Addo led administration, imposed 1.5 per cent tax on mobile money transfers, which was later reduced to 1 per cent in 2023, while the tax generated significant revenue for the government, with GH₵612.34 million collected in its first year and GH₵1.19 billion in 2023.
Despite the revenue generated over the years, the E-Levy was widely criticised for its impact on digital financial transactions and the financial burden it placed on Ghanaians.
Mr. Komla Dzidula, a mobile money vendor at Tetevikope in the Keta municipality, in an interview with the Ghana News Agency, welcomed the abolition of the E-Levy, stating that it would enable proper and successful transactions without the challenges posed by taxes.
“The abolition of e-levy is expected to encourage digital financial transactions and reduce the financial burden on citizens and l thanked President Mahama for fulfilling his promises,” he said.
He said that President Mahama’s decision to assent to the bill abolishing the E-Levy, betting tax, among others was seen as a fulfillment of his campaign promise to alleviate the financial burden on Ghanaians.
Mr. Dzidula explained that many of his customers have also expressed relief and optimism about the abolition of the E-Levy which is expected to have a positive impact on the digital financial sector and promote financial transactions and economic growth.
“I hope that this development will eventually boost our works and potentially enable us to regain all that we have lost over the years and uplift our businesses and the broader economy.”
However, others have also raised concerns about the potential revenue loss for the government which they estimated to be over GH₵2 billion annually.
Some suggested that the government would need to explore alternative revenue sources to compensate for the loss of revenue from the E-Levy for implementation of development projects.
Meanwhile, other ‘Momo’ vendors and residents GNA interacted with in the area, expressed satisfaction about the abolition of the taxes which was described as a significant development in Ghana’s financial sector and the implications will be closely watched in the coming months for it impacts.
GNA
