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Taxing Mobile Money transaction is insensitive-Della Sowah
Member of Parliament for Kpando, Della Sowah has described government’s decision to tax Mobile Money transaction through E-levy as insensitive.
The Finance Minister Ken Ofori-Atta on Wednesday announced in Parliament when presenting the budget that a new levy would be charged in 2022 on all electronic transactions.
“It is becoming clear there exists enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the ‘informal economy,” The Finance Minister said.
The new E-levy will be a 1.75 per cent charge on all electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances to be borne by the sender except inward remittances, which will be borne by the recipient.
Speaking to a section of the media in Parliament, Della Sowah said she believes that such tax will further worsen the woes of the ordinary Ghanaian who resort to Mobile Money as means of transaction.
She further noted that such a move will only destabilize Ghana’s financial inclusion drive, and force people especially those in the rural areas to carry huge monies for transactions.
According to her what has changed from what the Vice President Dr.Mahamudu Bawumia, said in August 2020, that he doesn’t believe Mobile Money should be taxed.
Della Sowah indicated, the Vice President admitted during an interview with Kwame Sefa Kayi that most of the users of the service are poor, and taxing it would bring more suffering.
” From August 2020 to November 2021, are all the poor users rich overnight? What has changed? This is insensitive,” she said.
She noted that when people are recovering from the craws of COVID-19, you don’t break their back through cruel taxes.
According to a Bank of Ghana report, Ghana saw an increase of over 120 percent in the value of digital transactions between February 2020 and February 2021 compared to 44 percent for the period February 2019 to February 2020 due to the convenience they offer.
The Member of Parliament for Nsawam Adoagyiri, Frank Annoh Dompreh, has expressed concern over delays in the release of the District Assemblies Common Fund, warning that the situation is stalling development across the country.
On his facebook page, he described as a matter of urgent national importance, the Minority Chief Whip pointed to what he sees as a growing crisis of unpaid contractors, abandoned projects, and halted infrastructure works in many districts.
He noted that several communities are grappling with half completed schools, unfinished health facilities, abandoned markets, deteriorating roads, and stalled sanitation projects.
According to him, many contractors who have executed projects for district assemblies have not been paid, forcing some construction firms to demobilise from sites while workers lose their jobs.
He stressed that the District Assemblies Common Fund is not a discretionary allocation but a constitutional requirement under Article 252 of the 1992 Constitution, intended to support development at the local level.
In his view, years of delayed releases and accumulated arrears have weakened district development financing and disrupted projects meant to improve living conditions in communities.
He further argued that some payments made in recent years were largely the settlement of old debts rather than funding for new or ongoing projects, a situation he believes has affected contractor confidence and local economic activity.
He described the issue as more than a budgetary challenge, characterising it as a development emergency and a governance concern.
He therefore urged the appropriate authorities to pay outstanding DACF arrears, settle contractors who have completed their work, and ensure that transfers to districts are automatic and predictable.
He maintained that decentralisation can only succeed when district assemblies receive adequate and timely funding to carry out development projects.
He emphasised that stalled projects directly affect ordinary citizens, since they rely on such infrastructure for education, healthcare, transportation, sanitation, and economic activities.
He called for renewed attention to grassroots development, insisting that national progress should not be concentrated only in major cities but extended to all communities.
By: Jacob Aggrey
Richard Appiah, the footballer who killed two children and stored part of their bodies in a fridge at Abesim in the Bono Region in 2021 has been handed a lifetime sentence.
This was after a five member panel of judges at the Accra High Court returned a verdict of guilty against the convict.
Appiah, 32, also a draughtsman would spend the rest of his life in prison after he was convicted of murder.
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BY MALIK SULLEMANA
