"1.75% Charge On All Electronic Transactions Will Enhance Financial Inclusion" - Ken Ofori Atta
The Finance Minister, Ken Ofori Atta has explained that the 1.75% charge on all electronictransactionswillhelp enhance financial inclusion. According to him, the charge will also protect the vulnerable.
Delivering the 2022 Budget Statement and Economic Policy on the floor of Parliament on Wednesday, the Finance Minister said "This fee will enhance financial inclusion and protect the vulnerable"
The Minister also stressed that the 1.75% charge forms part of government's measures to widen the country’s tax net.
"Transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances will have the levy imposed on them and will be borne by the sender" he disclosed. “After considerable deliberations, the government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the “Electronic Transaction Levy or E-Levy”,
Explaining further, Mr. Ofori Atta stated that the levy will be waived for transactions that amount to GHS 100 or less in a day or approximately GHS 3,000 per month.
The Finance Minister also mentioned that the new norm will rather be used to help entrepreneurship, youth employment, cybersecurity, digital, and road infrastructure and a host of other things.
He said "It is the expectation of the government, that the implementation of new policy will come into force effective January 1, 2022, if the appropriation is passed. Government will work with all industry partners to ensure that their systems and payment platforms are configured to implement the policy"
"The total value of transactions for 2020 was estimated to be over GHS 500 billion as compared to GH¢78 billion in 2016 while total mobile money subscribers and active mobile money users have grown by an average rate of 18% and 16% respectively between 2016 and 2019"
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Story by: Joshua Kwabena Smith