Minority lawmakers in Ghana reject government proposal to tax mobile money transactions – Fintech Bitcoin News

The Ghanaian government’s proposal to impose a 1.75% tax on digital transactions has recently been rejected by a small number of lawmakers who insist that the new tax undermines efforts to help increase the number of adults included in the finances.

Digital transaction tax

A few lawmakers in the Ghanaian legislature recently rejected a government proposal to impose a 1.75% tax on digital transactions, including mobile money payments. Legislators believe that such a tax will slow the country’s plan to increase the proportion of adult income from 58% to 75% by 2023.

According to a report, The proposed taxation submitted to Parliament by the Minister of Finance Ken Ofori-Atta was (or will be) expected to take effect from February 2022. The Ghanaian government believes that the proposed tax will help reduce the country’s deficit from an estimated 12.1% to 7.4% of this year’s GDP in 2022.

However, minority lawmakers in Ghana’s suspended parliament insisted that the taxation would run counter to efforts to increase the number of adults included in the finances. So far, these lawmakers have refused to meet with Offi Atta, who is reportedly trying to persuade them to support his proposal.

Fierce litigation

At the same time, lawmakers from the majority party withdrew after reporting the so-called “dramatic process,” which caused the debate to be postponed to November 30. The report also stated that minority lawmakers’ refusal to support taxation made legislators frustrated to support Ofori-Atta’s proposal.

The report quoted Majority Leader Osei Kyei-Mensah Bonsu as saying that questioned lawmakers’ refusal to support taxation. he asks:

Electronic taxes are the cornerstone of this budget. Where do we get money to build roads?

The transaction volume of Ghana’s mobile money platform surged by 82% in 2020, reaching 91.9 billion U.S. dollars, and is now an integral part of the country’s payment infrastructure. In addition to payments, these platforms are also used by the unbanked population of Ghana to obtain loans and pay insurance premiums.

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