2022 Budget: Mobile Money transactions to be taxed as gov't introduces 'e-levy' - Ofori Atta

2022 Budget: Mobile Money transactions to be taxed as gov't introduces 'e-levy' - Ofori Atta

  • Ken Ofori-Atta has announced that a new levy will be charged by the government in 2022 on all electronic transactions
  • The new electronic levy which will cover mobile money transactions and other electronic bank transfers
  • It will take effect from February 1, 2022

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The minister of finance, Ken Ofori-Atta has announced that a new levy will be charged by the government in 2022 on all electronic transactions.

This according to him will widen the tax net and rope in the informal sector.

Ofori Atta said the new electronic levy which will cover mobile money transactions and other electronic bank transfers will take effect from February 1, 2022.

Mobile Money transactions to be taxed
Minister of Finance, Ken Ofori-Atta Photo credit: Bloomberg
Source: Getty Images

He said 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’.”

Read also

E-levy: Association of Mobile money agents to go on strike over proposed 1.75 percent levy

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Ofori-Atta explained that the new E-levy will be a 1.75 percent charge on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances.

This he said will be borne by the sender except for inward remittances, which will be borne by the recipient.

The finance minister further added that it will not affect transactions that add up to GH¢100 or less per day.

No public worker was laid off despite impact of COVID-19 - Ofori-Atta

Meanwhile, Ken Ofori-Atta, has indicated that despite the effects of coronavirus on the economy, no public sector worker was sacked.

He made this known while presenting the 2022 fiscal Economic Policy and Budget Statement on Wednesday, November 17, while highlighting the negative impact of covid-19 on the economy.

Read also

Present a revised budget to parliament - Bagbin tells Finance Minister

“I am proud to announce that not a single public sector worker was laid off as a result of the impact of the pandemic on our economy and finance," he said.

According to Ofori-Atta, the government still managed to pay public sector workers their monthly salaries.

“We have managed to pay them monthly and we are grateful to the unions for their cooperation in this regard,” Ofori-Atta said.

The finance minister further told parliament that small and medium enterprises have been the hardest hit following the outbreak of the pandemic.

Source: YEN.com.gh

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