‘We’ll hit the street if e-levy on our merchant SIM isn't removed’ — MoMo vendors

Mobile money agents have threatened to hit the streets if the controversial e-levy on their merchant SIM cards is not removed.

The agents, under the umbrella group, Mobile Money Advocacy Ghana, issued a stern warning in a press statement, expressing "deep disappointment" over the additional tax burden imposed 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," said Kingsley Amoako-Atta, National Secretary of the advocacy group.

He added in a statement dated March 20: "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."

The agents argue the 1% e-levy on their merchant SIM cards, combined with the existing 10% income tax, amounts to unfair double taxation and has created an unsustainable financial burden.

They warned that shutting down shops across the country in protest could have "far-reaching implications" as many Ghanaians rely on mobile money services.

The group has called on the Finance Ministry and GRA to urgently intervene to alleviate what they describe as an "unsustainable financial burden."

They want the authorities to find a "fair and equitable solution" to address their "critical concern" over double taxation and ensure the viability of their businesses.

Read their full statement below:
PRESS RELEASE
March 20, 2024
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