Momo agents demand reduction of e-levy rate to 0.5%

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Mobile Money (MoMo) Agents Association of Ghana has urged government to further reduce the Electronic Transaction Levy (E-levy) rate from 1% to approximately to 0.5%.

According to the association, their businesses has been hit with setback due to the implementation of the tax.

Their call follows the government policy to reduce the e-levy rate from 1.5% to 1% in 2023, which was contained in the 2023 budget statement presented by the Finance Minister, Ken Ofori-Atta.

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Speaking to Accra-based Citi FM, the General Secretary of the Association, Evans Otumfour said, people have been avoiding the MoMo since government laid the tax and they believe something can be done about the current reduction which is 1% to play next year 2023 to either 0.1 or 0.5%.

“Government must conduct research to find out why people are not patronizing MoMo. It is obvious that the rate is one of the major hindrances to government achieving its revenue.

“So, government must reduce the rate so that a lot of people will not be impacted. There are over 17 million MoMo users, so if government pegs the rate at 0.1 or 0.5 percent, it will still meet its revenue target. If not, people will look for alternatives like the use of cash,” he explained.

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To them, the government can still achieve the expected target when they review the rate, therefore the agents called on them to consider reducing the rate to 0.5%.

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