The leadership of the Mobile Money (MoMo) Agents Association of Ghana has revealed that a staggering 17,000 MoMo businesses have collapsed since the Electronic Transaction Levy (E-Levy) was introduced.
MoMo agents applaud the E-Levy repeal after 17,000 businesses
reportedly shut down due to the tax
According to an internal survey
conducted by the association, many agents were forced to shut down due to
multiple deductions on transactions—whether through banks or between fellow
agents.
In an interview with JoyNews'
Emmanuel Bright Quaicoe, the General Secretary of the association, Evans
Otumfuo, stated that heavy taxation under the E-Levy severely reduced
working capital, making it nearly impossible for agents to sustain their
businesses.
"Many of our members had no
choice but to abandon their businesses. The levy affected not just our profits
but also the trust of our customers, who sought alternative ways to send and receive
money," he lamented.
With the new government’s decision
to abolish the E-Levy, the MoMo Agents Association has expressed
optimism, describing the tax as "counterproductive" and
detrimental to financial inclusion.
"The repeal of this levy is a
step in the right direction. It will bring relief to mobile money operators,
revive struggling businesses, and restore confidence in digital financial
transactions," Otumfuo added.
As Ghana moves towards a more
business-friendly tax regime, the hope is that the removal of excessive
levies will revitalize small businesses, boost digital transactions, and
support economic recovery.
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