A financial and economic consultant with the Imani Center for Policy and Education, King Carl Tornam Dohu, has disclosed that about 83 percent of Ghanaians who use mobile money services are shying away from the service because of the electronic transaction levy (e-levy) charges they have had to incur since its implementation in May this year.
He stated that most of these people are exploring other means of sending and receiving money without having to pay the charges, adding that since the implementation of the policy by the government, most users of mobile money services have resorted to limiting their transfers to GHC 100 per day to avoid the e-levy.
Mr. Dohu revealed that some subscribers also move money to the vendor’s own number, which is later cashed out for them. “So, instead of the government making money to undertake developmental projects, Ghanaians now prefer giving those charges to mobile money vendors instead of the government,” he asserted.
He argued further that Ghanaians feel that they are being over-tasked by the government already and are being burdened with several responsibilities following the hardship of the economy.
Mr. Dohu anticipated that the government may not be able to meet its target of GHC 4.5billion from the e-levy to execute its developmental agenda, and called on it to reduce the rate to a level most Ghanaians would embrace.
He made this disclosure on Wednesday when the policy think tank released a survey it conducted to assess the impact of the e-levy on mobile money usage since its implementation.
He said some Ghanaians have gone back to using the traditional banking system to escape the e-levy, claiming that the government did not adequately engage stakeholders before its implementation.
The electronic transactions levy was passed in March 2022 amidst controversy, including a walkout by the minority side of Ghana’s parliament. It is given effect by the Electronic Transfer Levy Act, 2022 (Act 1075), imposing a levy of 1.5%, which is charged to the transferor at the time of transfer. It was implemented on May 1, 2022, albeit in a phased approach, according to the Ghana Revenue Authority, with the government expecting to rake in some GHC 4.5 billion annually.
