By Elizabeth Larkwor Baah
Tema, March 13, GNA – Some mobile money (MoMo) vendors and users in Tema have expressed joy following the announcement of the abolition of the Electronic Levy (E-Levy).
Dr. Cassiel Ato Forson, the Minister of Finance, on Tuesday, announced the abolition of the E-Levy when presenting the 2025 budget statement in Parliament.
The announcement has been welcomed by the vendors and residents, who say the tax has negatively impacted mobile money transactions since its introduction.
The e-levy, which was introduced in 2022, placed a one per cent charge on electronic money transfers. Many Ghanaians criticised the tax, arguing that it discouraged digital transactions, increased the cost of doing business, and affected small-scale entrepreneurs.
Mr. John Asante, a mobile money vendor, said business had been slowed since the tax was implemented, as many customers chose to avoid mobile money transactions due to the extra cost.
“Most of my customers started looking for other ways to send money without paying extra charges; some began using cash, and others found alternative apps with lower fees.
Ms. Mary Mensah, another momo vendor, said she had lost many customers since the tax was introduced, saying, “Before the e-levy, people used mobile money for almost everything, but when the tax was introduced, customers started withdrawing their money in cash instead of using momo transfers.
“Some even stopped using mobile money at all; now that the government has decided to remove it, I believe more people will start using Momo again, and my business will improve,” she further said.
Mr. Kwame Teye, a momo vendor, explained that the levy affected his earnings since fewer people were depositing and transferring money through his outlet.
“This affected my commission because my income depends on the number of transactions I process; the removal of the levy is great news for vendors,” he added.
Some momo users described the abolition as a great move because it discouraged cashless transactions, forcing many to resort to cash payments, which posed security risks.
Mr. Thomas Ekuban, a customer, emphasised that the removal of the tax would encourage the use of digital financial services, making transactions more convenient and reducing the burden on low-income earners.
‘I am very happy NDC did not fail on their promise to abolish the E-levy; we can now send any amount we want. If the previous government had used it for something beneficial or something
we could feel its impact, it wouldn’t have been a problem, but we did not see anything the tax was used for,” he stated.
GNA
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