Mobile money operators are expressing their dissatisfaction with the Ghana Revenue Authority (GRA) over what they perceive as double taxation.
In a statement released by the group’s National Secretary, Kingsley J. Amoako-Atta, on March 20, 2024, they highlighted their concerns regarding the imposition of an e-levy on agent SIM cards.
The operators argue that this would result in double taxation as they are already subject to a 10% income tax on all transactions.
Despite engaging in discussions with the GRA to address this issue, they have yet to witness any significant resolution. They emphasize that if this matter is not promptly resolved, they may face the risk of losing their capital due to the burden of double taxation.
“This new levy, in addition to the existing 10% income tax on all transactions, has resulted in double taxation for our businesses, posing a severe threat to our financial sustainability. The imposition of the E-levy on Agent SIM cards and the 1% levy on all Push and Pull transactions from banks are creating an unsustainable financial burden for mobile money agents,” the agents said.
They have therefore threatened that “If our concerns are not adequately addressed, we will have no option than to consider shutting down our shops and go on demonstrations to safeguard our capital and livelihoods.”
Attached is the press statement by MOMAG:
PRESS RELEASE
URGENT APPEAL TO ADDRESS DOUBLE TAXATION ON MOBILE MONEY AGENTS
The Mobile Money Advocacy Group, Ghana and the entire Momo Agents across the length and breadth of Ghana, write to register our deep disappointment and urgent concern regarding the imposition of the E-levy on agent SIM cards by the Ghana Revenue Authority (GRA).
This new levy, in addition to the existing 10% income tax on all transactions, has resulted in double taxation for our businesses, posing a severe threat to our financial sustainability.
Despite engaging with the GRA to address our concerns, we are yet to see any meaningful solution. The current situation is untenable, and if not addressed promptly, we risk losing all our capital due to the heavy burden of double taxation.
We urgently call on the government, particularly the Ministry of Finance, and other relevant stakeholders to intervene and bring the GRA to order.
The imposition of the E-levy on Agent SIM cards and the 1% levy on all Push and Pull transactions from banks are creating an unsustainable financial burden for mobile money agents.
If our concerns are not adequately addressed, we will have no option than to consider shutting down our shops and go on demonstrations to safeguard our capital and livelihoods.
This would have far-reaching implications for the mobile money
We appeal for your immediate attention to this critical issue and seek your support in finding a fair and equitable solution to alleviate the burden of double taxation on mobile money agents.
We are committed to working collaboratively with the relevant authorities to address this pressing concern and ensure the continued viability of our businesses.
We urge you to act swiftly to prevent the potential closure of shops of Mobile Money Agent/ Agency Banking and to safeguard the livelihoods of countless individuals who depend on this sector for their income.
We look forward to your prompt and decisive action on this matter.
Thank you.
Signed by
Kingsley J.Amoako-Atta
National Secretary
0243944042
