E-levy on the verge of eroding Momo gains of the economy: Telcos and Momo Merchants will be affected just like customers.
The introduction of Momo by the Telcos has been a blessing on all fronts, even in the face of fraud and scammers. It made the sending and receiving funds from family, friends, and business partners. It was the most reliable medium of exchange, store of value, and a standard for deferred payment.
It has improved business payment processes and helped many users of Momo to connect their Momo accounts to their bank accounts and also pay for services and goods without the difficulties that the use of cash created.
However, Ghana is moving into a new phase in the use of Momo when the Government’s newly passed e-levy law takes effect. Big and small businesses, the rich and the poor are thinking of how to avoid the e-levy, which aims at taxing account owners for using electronic means of sending money. The tax on mobile money transactions is going to be charged on different transactions.
Crazy E-levy facts you need to know before it is too late
- Any mobile money transfer between users on the same network will be charged.
- All mobile money transfers between users on different networks will be charged.
- When you make a mobile money transfer from your bank account to your mobile money wallet, you will pay the e-levy.
- The e-levy will be charged each time you transfer money from your momo account to your bank account.
- Finally, if you engage in any interbank transfers including the mobile money application, the e-levy will be applied.
Panic withdrawal of funds by momo account holders began after the passage of the controversial Electronic Transactions Tax, known popularly as the E-levy on Tuesday, March 29, 2022.
The Momo tax is nothing a tax that is multiplicative, thus it keeps taxing the same income as it moves from one person to the other and this is not of interest to the common man.
READ: Panic Withdrawals Hit MoMo Industry due to E-levy
The Controller and Accountant General’s Department (CAGD) and the Ghana Revenue Authority (GRA) should be able to put their system together for the e-lavy to take effect. The use of Momo will be expensive once the tax comes on board. Below are the fees momo users will pay for using the service. These charges will reduce the volume of transactions and the frequency and increase the queues in banks.
Crazy E-levy facts: Charges that will hit your momo account from May 2022.
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