Charles Adu Boahen, Minister of State at the Finance Ministry, has disclosed that the total value of Mobile Money (MoMo) transactions has skyrocketed since 2016 and currently stands at 99 billion dollars. He therefore, asked Ghanaians to allow government to have a small share.
While giving the breakdown of the value of Mobile Money transactions since 2016 till date. The Minister noted that available data showed that in every second, one thousand Mobile Mobile (MoMo) transactions take place in Ghana.
“So, since Mobile Money in 2016, total value of transaction is about 20billion dollars which was about 79 billion cedis. In 2020, when we have the latest data it had skyrocketed to 99bn dollars. In 2017, it went to 35bn dollars about 156bn cedis, then it went to 48bn dollars in 2018 of about 223bn cedis.
“In fact, in 2020 the number was 99bn dollars. A thousand transactions per second. All government is asking for is a small share.”Adu Boahen
The Minister indicated that government is confident that when Parliament resumes sitting on January 25, the E-Levy Bill, which had already been discussed and approved by the Finance Committee of Parliament, will be passed.
Healthy Debates not Fiscal Risk
In the interim, the Ministry of Finance (MoF) asserted that a healthy debate in a vibrant Parliament is a critical part of Ghana’s growing democratic credentials and by no means should it be deemed to be a fiscal risk.
“It is most unfortunate to note that foreign investors and market participants are on edge following the impasse in Parliament, in relation to the passage of the E-levy Bill. The market seems to now be pricing into our bonds the perceived risks of having a slim majority in Parliament and the consequences thereof.”Ken Ofori-Atta
Ken Ofori-Atta explained that the markets also seem to be concerned that the situation might impact Government’s ability to successfully pass and implement some of its major revenue policy measures as presented in the 2022 Budget.
The Finance Minister, Ken Ofori Atta, while answering a question on what the government’s Plan B is for the economy and revenue generation should the e-levy fail, revealed that “the plan is for the government to remain focused and get the E-levy proposal through to ensure the domestic revenue mobilisation is strong.”
Group Opposes the E-levy
Since the announcement of the e-levy, many Ghanaians have registered their displeasure about the tax.
The latest group to criticize the tax is the ‘Economic Fighters League’. The group reiterated its position that the E-levy proposal in the 2022 budget statement is unfair and will only increase the tax burden of average to low wage earners.
The group stated that the proposal smacks of insensitivity on the part of politicians.
“The complicity of the NPP and NDC has played and continues to play a significant role in oppressing Ghanaians. Rather than auditing the ‘bizarre and opaque contracts’ that have caused ‘the abysmal financial mess and crisis the country has been in over the years,’ both parties whilst in government, have reached for more taxes that penalize subsisting Africans in this unbalanced and unsustainable fiscal regime.”Economic Fighters League
There is currently an ongoing public education and engagement by the Finance Minister over the e-levy to convince Ghanaians to support it.