Mobile Money Vendors Threaten Strike Over 1% E-Levy On Agent Sim Cards: “We Will Have No Option”
- Mobile money operators have threatened to protest double taxation by the Ghana Revenue Authority
- The Mobile Money Advocacy Group said the imposition of the e-levy on its members amounts to double taxation
- Kingsley J.Amoako-Atta, the General Secretary of the Mobile Money Advocacy Group, told YEN.com.gh this was a severe threat to members
Mobile money operators have threatened to strike in protest of double taxation by the Ghana Revenue Authority on their work.
The Mobile Money Advocacy Group said the imposition of the e-levy on its members amounts to double taxation.
Source: Getty Images
The group cited the existing 10% income tax on all transactions.
It called this development a severe threat to financial sustainability.
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"The current situation is untenable, and if not addressed promptly, we risk losing all our capital due to the heavy burden of double taxation."
Kingsley J.Amoako-Atta, the General Secretary of the Mobile Money Advocacy Group told YEN.com.gh his outfit had engaged the Ghana Revenue Authority but to no avail.
He said there was a push for a refund and the removal of the levy, but to no avail.
"We do push and pull form banks to our agent sims and agent sims to banks. Some of us are doing agency banking… anytime we do this push or pull from banks, they deduct.”
Our money for the business is dwindling. Sometimes, you can do push and pull about two times or three times in a day... If care is not taken, our money will just go down through the deduction for the e-levy and our businesses will collapse.”
Mobile money vendors get increased commissions
This news comes after mobile money agents saw increased commissions on large transactions starting March 1, 2024.
According to documents sighted by YEN.com.gh, the vendors will now make a 0.4% commission on transactions up to GH¢2,000.
Before, transactions between GH¢1,000 and GH¢2,000 had a flat fee of GH¢4.
The maximum commissions have been raised to GH¢8 from GH¢4. This affects transactions of GH¢2,000 and above.
This comes after the Central Bank reviewed the transaction and balance limits of mobile money wallets upward.
From March 1, 2024, customers with a minimum account, which initially had a limit of GH¢2,000, have been upgraded to GH¢3,000 for daily transaction limits, among others.
Vendors have been upset at low commissions and recently limited cash withdrawals to a maximum of GH¢1,000 per transaction for a period.
NCA boss suggests telcos may compensate Ghanaians for internet outage
YEN.com.gh reported that the National Communications Authority boss has indicated that telcos could compensate subscribers after the internet outage.
Dr Joe Anokye noted that the Mobile Network Operators were independent and would have to make a proposal.
Damage to undersea data cables is reported to have caused the widespread disruption to internet services.
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Source: YEN.com.gh
