No Tax On MoMo Services

Kwaku Kwarteng, Deputy Minister for Finance, has indicated that government has no plans to impose taxes on Mobile Money Services (MOMO) for now.

This comes in the wake of recent speculations that government intends to impose taxes on Mobile Money transactions in the country.

Contributing to discussions during a stakeholders’ workshop organized by MTN Ghana on the theme, “Digitizing Payments In Ghana: The Implications of Additional Taxes on Mobile Money Transaction at Kempinski Hotel in Accra on Wednesday, the Deputy Minister for Finance, opined that government was mindful of the huge patronage of the Mobile Money Services and would therefore not engage in any action that would jeopardize it.

Mr Kwarteng, who commended MTN Ghana for its MoMo services, said the digitization of payments falls in line with government’s agenda of fighting corruption, protecting the public purse and creating a cashless society.

“Politically, it’s easier for government not to increase taxes so that the private sector will have its freedom. However, what must not be lost on us is the fact that government is duty-bound to keep the national economy running while ensuring that cash out from MoMo transactions is controlled,” he remarked.

Dr. Maxwell Opoku-Afari, First Deputy Governor of the Bank of Ghana (BoG), in a remark, said the geometric patronage of Mobile Money Services in the country stood at about 30 million subscribers and was still growing.

He indicated that mobile money should be formalized so that patrons’ investments would be secured and protected.

“It’s good for the private sector to collaborate with government to create the space for innovation that will enhance the e-Payments system as we work towards a reduction in cash outs,” he opined.

Eli Hini, Head of Mobile Financial Services at MTN Ghana, enumerated the benefits of Mobile Money Services, which include job creation and winning the confidence of the unbanked members of society.