The government has taken notice of some MoMo agents helping users of mobile money to dodge the contentious e-levy and has therefore directed the Ghana Revenue Authority to tax merchants’ accounts through e-levy starting from July 1.
The e-levy which was rolled out on May 1 initially excluded the accounts of merchants from the taxation. However, following the aforementioned situation, the Ghana Revenue Authority has come out to reveal its plans to tax merchants’ accounts.
In light of this, the Ghana Mobile Money Association, Evans Otumfuor has kicked against the decision and explained why the demerits will crumple their business.
“I understand the fear, but the extension of the E-levy to merchants is really going to put so much burden on us and draw us back. Businesses are really going to suffer. We are going to have most businesses demanding cash for payment of goods instead of Mobile money.
I do not see why, all of a sudden, it has become necessary that merchants who were initially excluded have drawn into the tax bracket. That is unfortunate, so it something government should not encourage.”