Exclude salaries paid through MoMo from e-levy – Telco Chamber

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Exclude salaries paid through MoMo from e-levy

The Ghana Telecoms Chamber has called on the government to exclude payments of salaries through mobile money transactions from the e-levy.

Chief Executive of the Ghana Chamber of Telecommunications, Ken Ashigbey

According to the Chamber, it will be discriminatory on the part of government if the law is not amended to exclude it.

In an interview on Accra based Citi News, the Chief Executive Officer of the Ghana Chamber of Telecommunications, Dr. Kenneth Ashigbey said it is important that all key challenges are looked at.

“Some of the challenges we have seen with the law, as has been passed, which we hope to take up, are a few discriminatory elements within what’s happening. For example, if your salary is paid from a bank account, it won’t attract the E-Levy, but if you are paid with mobile money, then it will attract the E-Levy. That definitely is not equitable and is discriminatory.”

“We hope that going forward, such issues will be addressed. We know that one of the elements of a good tax is that it should not be discriminatory, especially due to the channels that one uses. All of these are things we will be working on with government to ensure that the unintended consequences do not come and derail government’s own digitalization agenda that it’s put up,” he added.

According to the chamber, per the current law, salaries that are paid via mobile money would attract the 1.5% charge, whereas salaries paid through banks will not attract any E-levy. Finance Minister, Ken Ofori- Atta

The levy is a 1.5% tax on electronic transfers that include but is not limited to, mobile money transfers done between accounts on the same network, mobile money transfers from an account on one network to a recipient on another network, transfers from bank accounts to mobile money accounts, and transfers from mobile money accounts to bank accounts.

Finance minister Ken Ofori-Atta announced that the government introducing an E-levy in the 2022 budget was to “widen the tax net and rope in the informal sector”.

The tax has sparked a whole lot of controversy among Ghanaians and is estimated to bring in nearly $7 billion in income for the government of Ghana.

After the Minority in Parliament walked out, the Majority in Parliament authorized the E-levy, claiming that the tax is a tool to intensify the hardship of the impoverished Ghana.

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