President of the Ghana Association of Bankers, Madam Patricia Sappor, has revealed that the value of mobile money transactions for the first four months of this year totalled ¢301.1billion whiles that of cheque transactions over the same period amounted to ¢68.3bn.
Madam Sappor said this when she was speaking during the 25th National Banking conference in Accra on the theme “the digital economy of Ghana the strategic role of the banking industry” on Thursday, November 18.
She said “The value of mobile money transactions for the first four months of this year totalled 301.1billion whiles that of cheque transaction over the same period amounted to 68.3bn.
“If the trend continues which I believe will, the total value of mobile money transactions will surpass cheque transactions by far more than 389bn recorded for the whole year of 2020.”
Her comments come at a time the government has introduced a tax on mobile money transactions in the budget statement for the 2022 fiscal year.
The Finance Minister, Ken Ofori-Atta announced a new levy to be charged by the government in 2022 on all electronic transactions to widen the tax net and rope in the informal sector.
“It is becoming clear there exists the enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the ‘informal economy’,” Mr Ofori-Atta observed on Wednesday, November 17 as he presented the 2022 budget statement in Parliament.
“After considerable deliberations, the government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the ‘Electronic Transaction Levy or E-Levy’.”
He explained that the new E-levy will be a 1.75 per cent charge on all electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances to be borne by the sender except inward remittances, which will be borne by the recipient.
This will, however, not affect transactions that add up to GH¢100 pr less per day.
“A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others.”
This new levy is scheduled to start Saturday, January 1, 2022.
In 2020, the total value of transactions was estimated to be over GH¢500 million with mobile money subscribers and users growing by 16 per cent in 2019.
According to a Bank of Ghana report, Ghana saw an increase of over 120 per cent in the value of digital transactions between February 2020 and February 2021 compared to 44 per cent for the period February 2019 to February 2020 due to the convenience they offer.
This was definitely heightened by the advent of Covid-19, especially during the lockdown.
Meanwhile, Energy Minister Dr Mathew Opoku has said a lot of education is required on the e-levy that has been introduced in the 2022 budget statement.
Speaking on the New Day show on TV3 he said the levy affect specific transactions, not all.
“The implementation is going to come with education, not everything that is affected. For example, less than a hundred cedis transaction is not affected. There is a lot of education that needs to be done,” the Manhyia South MP told TV3’s Johnnie Hughes on Thursday, November 18.