Mobile Money agents all across the nation are protesting the government’s imposition of a 10% tax on their profits.
At an emergency meeting on Friday, June 25, 2021, the agents said that they can no longer tolerate any more financial burden on their operations.
The Mobile Money Agents Association of Ghana (MMAG) stated in a statement released after the meeting that all attempts to engage the government and stakeholders on the levy had failed.
The government has issued a new regulation requiring telecoms to deduct a 10% tax from MoMo agents’ cash-out services.
The government’s decision, according to the organization, implies that they will now have to pay a total of 20% tax on a monthly basis, which does not bode well for the long-term viability of their companies.
“The Union cannot comply with the government’s order to take 10% more from our cashout services wallet,” says the union.
“In sum, every Agent on each network will pay a 20% tax on a monthly basis. Agents initially paid 5% on cash-in Service wallets, but this was surreptitiously raised to 10% without our knowledge. The Association said, “We believe this is a flagrant disrespect for procedures.”
They claim that, in addition to the numerous financial obligations they face, such as the cost of utilities and taxes, the acquisition of an operating permit, the payment of social security for employees, and the cost of labor, they are also confronted with various challenges, such as armed robbery attacks and fraud, which have nearly brought their businesses to a halt, particularly in the wake of the COVID-19 pandemic.
Members of the Association pay approximately nine separate taxes, according to the Association, and would struggle to keep up if the additional tax were imposed.
“In such a climate, no business can thrive… In Ghana, no company is required to pay nine separate taxes; only a tiny business like MoMo is exempt from these taxes.”
While the association is not enthusiastic about the development and does not want to burden its consumers, Evans PK. Otumfuo, the organization’s General Secretary, stated the association has no choice but to pass the expense on to them.
“Management is notifying all MoMo Agents through this press to pass the expense on to the consumer. It is not in our best interests to arrive to this stage, but there are no other choices, so we must act.”
The operators have not said how they plan to pass the tax burden onto their consumers, but they have stated that a new price module for their services would be released on Monday, June 28.
“By Monday, June 28th, 2021, the new price will be available,” they said.
Read the Full Statement below
Source: CITINEWSROOM
