Govt imposes 1.75% tax on momo, other digital transactions- Ken Ofori-Atta

Mobile Money and other electronic banking charges, remittances and others are expected to increase because government has slapped momo transactions and electronic banking services with 1.75 tax.

Finance Minister Ken Ofori-Atta has revealed that it will undertake prudent measures in place to empower private sector.

Presenting 2022 Budget Statement and Economic Policy/FiscalPolicy Statement to parliament on Wednesday November 2021 in Accra-Ghana, Ken Ofori-Atta said ” Mr. Speaker, Ours is the private sector development. We will ensure business-friendly environment and policy. We’ll ensure our youth are job creators not job seekers”.

“Government has abolished all tolls on public roads. Government to digitise health records of Ghanaians”, he said.

For Ofori-Atta, “3,448, 065 pupils were fed under the School Feeding Programme”.

According to Finance Minister Ken Ofori-Atta, government intends to construct multipurpose sports facilities at Borteyman in Accra and 5 interchanges in Greater Accra and Kumasi Metropolitan area”.

Meanwhile, government has introduced Electionic Transaction Levy of 1. 75% . That is Momo tax has been successfully introduced ( E-levy).

Benchmark discount on goods and cars reviewed.
Prices of General Good will go up by 30%
And used cars by 20 to 25%.

This will affect mobile money transactions, merchant transactions, remittances from abroad to Ghana and from Ghana to abroad.

Reacting to the new E-levy, Former Deputy Power Minister John Jinapor insists “Minority Caucus of parliament will not approve imposition of new taxes on Ghanaians who are already burdened with hardships.

Ghana’s total public debt stock currently standard at GHC 341.7 billion rising from 120 billion in the erstwhile Mahama administration.

According to Minority Spokesperson on Finance Dr. Cassiel Ato Forson, Ghana’s public debt stock is projected to hit GHC 355 billion by the end of December 2021, which 82% of debt to GDP ratio.

He noted that Ghana’s debt to GDP ratio will hit 90% by 2023, adding that the 2022 Budget will impose worsening hardships on Ghanaians.

In a sharp rebuttal, Deputy Majority Leader said ” NPP Government has demonstrated competence to the management of the Ghaianan economy”.

Dean of UCC Business School Prof. John Gatsi says “We need seek further explanation on the removal of tolls on public roads”.

Recap of taxes in the 2022 Budget

1.Increased VAT by 5% and this affected all items (through the decoupling of NHIL and GETFund Levies)

2.Luxury car tax

3. 3% VAT flat rate

4. COVID-19 tax

5. Sanitation tax

6. 5% National Fiscal Stabilization Levy (should have expired in December,2017 but was extended indefinitely making it a new tax)

7. 2% component of Special Import Levy (extended beyond 2017 sunset clause making it a new tax)

8. Increased ESLA by 30% and extended it for another 15 years

9. Increased Communication service tax by 50%

10. Increase the VAT Flat rate from 3% to 4%

11. Financial Sector Levy of 5% on all Banks

12. Price Stabilization and Recovery Levy on fuel increase by 40%

13. The Unified Petroleum Pricing Formula has been increased by 164%

14. BOST margin has increased from 3 Pesewas to 9 Pesewas representing 200% increase.

15. The fuel marking margin levy has also been increased by another 233%

16. Reversal of Benchmark Values discounts which will lead to a 25-30% increase in prices of imported items.

17. Electronic Transactions Levy which will affect Momo,Bank Transfers,Merchant Payments and Inward Remmitances.

18. 15% in All government fees and charges.

Source : africaneditors.com