‘1.75% momo tax reverses gains made in banking sector’- Ex-Deputy Finance Minister
“You are collapsing the Mobile Money sector, your momo tax reverses all the gains made in banking sector, if my constituents asked me that Ato send me my children’s school fees, it means NPP government will deduct 1.75% tax on the mobile money transactions I will make, that’s insensitive”, Former Deputy Finance Minister Dr. Ato Cassiel Forson reacted to Ghana’s 2022 Budget and Economic Policy of Ghana presented to parliament on Wednesday 17 November 2021 in Accra.
Finance Minister Ken Ofori-Atta, presenting fiscal Policy Statement to Parliament imposed 1.75% tax on mobile money and other digital transactions.
But, in a sharp rebuttal to the new tax, the Minority Spokesperson on Finance Dr. Cassiel Ato Forson said “Government has imposed 17 different taxes, poverty and unemployment is on the rise. The best thing to do is to take the exemptions out but the government has imposed additional taxes including momo”.
“What pains me is that the entire value chain including the telcos, mobile money merchants take only 1% but government government is taking 1.75% …so who is the owner of the business…the momo merchant or NPP government?”.
Meanwhile, another Former Deputy Finance Minister Kweku Kwarteng said “Let’s wait for legislation to see how the new tax policies will be implemented. Although Ato Forson has made some legitimate points, we have to wait to see how the new tax will be implemented because there can be some exemptions”
He noted that “I’m the Chairman of the Finance Committee of Parliament and the budget has been read but I will wait for them to bring details to parliament and we look at it. Don’t be in a haste. There can be exemptions on the momo tax”.