Ghana Minority Lawmakers Oppose Government Proposal Taxing Mobile Money

A minority of legislators rejected the proposal by the government of Ghana to impose a 1.75% tax on digital transactions. They claim that the new tax will hinder efforts to increase financial inclusion for adults.

The Digital Transactions Tax of Ghana

The government’s proposal to impose a 1.75% tax on digital transactions, including mobile-money payments, was rejected by a minority of Ghanaian lawmakers. These lawmakers claimed that a levy on digital transactions, including mobile-money payments, would slow down Ghana’s plans to increase the percentage of financially included adults to 75% from 58% to 75% by 2023.

According to a report, the Finance Minister Ken Ofori Atta presented the proposal for a levy to parliament. It was expected that it would become effective in February 2022. According to the Ghanaian government, the proposed levy would reduce the country’s current deficit of 12.1% of its gross domestic product to 7.4% by 2022.

The minority legislators in Ghana’s hung Parliament insist that the levy will not work against efforts to increase financial inclusion for adults. According to the report, these lawmakers have refused to meet Ofori Ata, who is trying to persuade them to support his proposal.

Ghana Heated Proceedings

The report described “heated proceedings” as lawmakers from the majority bloc walked out, and the debate was rescheduled for November 30. According to the report, lawmakers who support Ofori-Atta’s proposal were frustrated by the refusal of minority legislators to support the levy.

According to the report, Majority Leader Osei KyeiMensah Bonsu questions the legislators’ refusal to support the levies. He said:

This budget is built on the e-levy. How will we get the money for the roads?

The country’s payment infrastructure is now complete thanks to the indispensable role of Ghana mobile money platforms. In 2020, transactions jumped 82% to $91.9 million. The platforms can be used for payments as well as accessing loans and paying insurance premiums by Ghana’s unbanked.