Government has reduced the headline rate of the controversial e-levy from 1.5 percent to one percent of the transaction value, finance Minister, Ken Ofori-Atta has announced.
Presenting the 2023 budget statement, the minister further announced the removal of the daily threshold.
Ghana’s introduction of a 1.5% tax on mobile money transactions in May 2022 has been watched closely by policymakers across Africa. The proponents of the electronic transaction levy (E-levy) argue that taxes on mobile money – commonly referred to in Ghana as MoMo – present an opportunity for cash-strapped governments to raise funds in the complex post-pandemic context.
In Ghana, the ‘E-levy’ has been linked to the current administration’s ‘Ghana Beyond Aid’ strategy for reducing aid-dependence.