Cameroonians have welcomed 2022 with a new mobile money tax which is similar to that of Ghana’s own e-levy. However, citizens followed the path taken by Ghanaians and met it with harsh resistance.
Cameroonians are expected to pay 0.2% tax on Mobile Money, which is expected to be levied on the transfer and withdrawal of money via the mobile money platform.
According to Cameroon’s 2022 Finance Law which was passed on January 3, 2022, the tax is expected to start early this month on January 2022.
“The tax applies to transactions carried out through all the traceable technical platforms (like internet, mobile phone, wire order, telex, fax) except for bank transfers and electronic transactions carried out to pay tax and customs duties.”
2022 Finance Law
“The tax will also be applied to cash withdrawals from financial institutions or mobile telephony operators,” the 2022 Finance Law added.
End Mobile Money Tax Campaign
On social media, Cameroonians are livid at the tax with the reason that the mobile money component in particular was unfair in many ways.
One of the key voices against the tax is Rebecca Enonchong, a leader in African tech ecosystem, who tweeted as follows: “Can you imagine being charged a tax to withdraw your own cash out of your account? For millions of Cameroonians who hold their money in mobile money wallets, this became a reality this year.
“This tax is regressive and will slow financial inclusion. #EndMobileMoneyTax. #WeSayNo.”
Rebecca Enonchong’s Tweet
Arrey Ntui, a security analyst with the Crisis Group also highlighted the draconian nature of the tax via a tweet: “Cameroon should pursue financial inclusion as cost of living skyrockets. The mobile money tax unfairly punishes Cameroon’s poorest people.
“Cheque and bank transfers have no similar tax. Over four million humanitarian aid needers rely mostly on mobile money”.
Many other Cameroonians expressed their displeasure at the new tax with many calling for street protest should the government refuse to listen to them.
The Ghanaian Case
Here in Ghana, it has taken the stiff opposition of Minority lawmakers to torpedo the Electronic Transactions Levy (E-levy) Bill. Ghanaians would have started the year with a similar tax component pegged at 1.75%.
When Parliament reconvenes later this month, it is expected that processes will be undertaken to reconsider the bill.
The opposition party NDC has stressed its continuous opposition to the levy that was contained in the 2022 budget presented in Parliament by Finance Minister Ken Ofori-Atta in mid-November.
Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.
“To safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day, which is approximately ¢3000 per month, will be exempt from this levy.”
Ken Ofori-Atta
Fees and charges of government services have also been increased by 15%.
It is however unknown if the two governments (Cameroon and Ghana) will listen to their citizens and call off the tax or ignore their pleas and go on with the tax.
