Tuesday, May 24, 2022
Business

E-Levy: MTN, AirtelTigo agree to reduce reduce MoMo charges

MTN, AirtelTigo

Telecommunications giants MTN and AirtelTigo have agreed to revise downwards charges on person-to-person electronic transfers in the face of the impending Electronic Transactions Levy (E-Levy).

The two telecom companies are expected to reduce the fees charged customers by up to 25 percent “depending on the respective operator”.

A statement issued by the Ghana Chamber of Telecommunication (GTC) on behalf of the telcos on Friday, December 17 said extensive deliberations have been held with the government on the need to lessen the impact of the e-levy on customers.

With this decision, customers will pay less on their transfers as the government also negotiates with the telcos on how to deduct the 1.75 percent proposed to be taxed on electronic transactions. Less than GH¢100 transactions will, however, be exempt.

The new levy, expected to raise almost GH¢7 billion per annum, was announced by the Minister of Finance, Kenneth Nana Yaw Ofori-Atta, in the 2022 budget presented to Parliament on Wednesday, November 17.

It has been one of the controversial policies captured in the budget, suspected to have led to the rejection of same by the Minority.

The budget, christened Agyenkwa Budget by Mr Ofori-Atta, has since been approved with the implementation of the e-levy to start on Saturday, January 1, 2022.

“Each operator would notify their customers of the applicable revised rate when the e-levy bill is passed into law.”

Already, Vodafone Ghana Mobile Financial Services Limited, managers of Vodafone Cash, do not charge customers on transactions.