Selorm Adadevoh, the Chief Executive Officer (CEO) of MTN, has credited the reduction of the electronic levy rate as being responsible for the massive increase in the mobile transactions.
According to the MTN CEO, the government’s decision to review the Electronic Transaction Levy (E-Levy) rate downwards was timely as MTN Ghana witnessed a significant increase in both withdrawals and sending money from wallets.
Addressing journalists at a media and stakeholders forum in Accra, the Chief Executive officOfficer er of MTN said, “This revision is very positive for us as a business but also for Ghanaians”. Mr Adadevoh added saying, “We have seen a lot of increased appetite for mobile money transactions.”
Reduction in E-levy Rate
The government, in June 2022, announced it realised roughly GHC60 million from the E-Levy, far below the projected GHC600 million, a month after the rollout of the policy.
This, however, necessitated the reduction of the levy rate from 1.5% to 1%.
The implementation of the revised Electronic Transfer levy (E-Levy) rate of 1% commenced Wednesday (11th January), according to the Ghana Chamber of Telecommunications. The Commissioner General of the Ghana Revenue Authority (GRA) has also issued a directive to that effect.
“As captured in the Electronic Transfer Levy (Amendment) Act, 2022, Act 1089, which has been passed by Parliament and assented to by the president, the levy on electronic transfers has been reduced from 1.5% to 1%, while the GHC100 threshold remains unchanged,” the chamber said in a statement.
The reduction from 1.5% to 1% came into effect after the realisation that the levy has failed to meet all of its revenue targets since its introduction.
Players in the telco space have also been raising concerns over the low-running and ineffective mobile money service.
The Finance Minister Ken Ofori-Atta first announced the decision to reduce the levy from 1.5% to 1% on Thursday (24th November 2022) during the 2023 Budget Statement presentation in Parliament.
The E-levy was introduced by the government to enhance domestic tax mobilisation and expand the tax base. To also provide an opportunity for everyone to contribute towards national development.
It is aimed at Mobile money providers like MTN Momo, Vodafone Cash, AirtelTigo Money,Zeepay, GCB G-Money, and Yup Ghana etc. Also, Payment Service Providers (PSPs) including eTranzact, JuniPay, Korba,Nsano etc. Banks like Consolidated Bank Ghana, GCB Bank, Agricultural Development Bank (ADB) etc. Specialised Deposit-Taking Institutions (SDIs) such as Rural and CommunityBanks, Savings and Loans Companies, Finance Houses etc.
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