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Momo Tax: Government Likely To Raise GHS 500M Monthly-Ursula Owusu

The Minister for Communications and Digitalization Ursula Owusu has said that the government of Ghana is likely to raise Ghs500m per month from the newly introduced E-Levy.

She also mentioned that the government is also likely to raise over Ghs9 billion each year from the newly introduced E-Levy.

While presenting the 2022 budget in Parliament on 17th November Finance Minister Ken Ofori-Atta said that government introduced 1.7% E-Levy payable by mobile money users per transaction over Ghs100.00 as a result of the government’s quest to compensate the abolishment of road tolls.

He noted that government will use revenue generated from the e-levy to fund road projects in Ghana.

“Total value of transactions for 2020 was estimated to be over GHS 500 billion Cedis compared to GH¢78 billion Cedis in 2016 just 5 years ago, 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. Mr. Speaker, it is becoming clear there exists the enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the “shadow economy”.

“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.”

Speaking in an interview the Ablekuma West MP said government’s move to introduce E-levy is a prudent way to raise money for the country’s development.

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