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17,000 Mobile Money Businesses Collapsed Due to E-Levy: MoMo Agents Welcome Tax Repeal

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

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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