Mobile money agents threaten shutdown over "unbearable" double taxation

Mobile money agents are threatening to shut down their shops if the government does not address the problem of double taxation they say is making their businesses unviable.

In a press release dated March 20, the Mobile Money Advocacy Group (MoMAG) representing agents across the country appealed to authorities to intervene, warning that "we will have no option than to consider shutting down our shops and go on demonstrations" if their concerns are not addressed.

National Secretary of MoMAG, Kingsley J. Amoako-Atta, said the introduction of the electronic transactions levy (E-levy) on top of the existing 10% income tax amounts to "double taxation for our businesses, posing a severe threat to our financial sustainability."

Amoako-Atta added: "The current situation is untenable, and if not addressed promptly, we risk losing all our capital due to the heavy burden of double taxation."

MoMAG noted that the layering of the E-levy on agent SIM cards and the 1% levy on bank transactions have created "an unsustainable financial burden" that is eroding the agent's profits and capital.

Read their full press release 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