June 23, 2022

Decline in MoMo usage won’t lead to job losses – John Kumah

Deputy Minister of Finance, John Kumah

24% attrition rate to be recorded in the first 6 months of E-Levy

Minority rejects revised 1.5% rate

The electronic debit will be tabled again in parliament on February 1, 2022

Deputy Finance Minister John Kumah said the government has put in place the necessary measures to ensure that people continue to use mobile money services after the implementation of electronic direct debit.

According to him, government research shows that there will be a 24% drop in the use of mobile money services in the first six months of the introduction of the E-Levy, but will not affect MOMO operator jobs.

“The research also told us what to do to bring these people back after a while, and we have all of those things in place.”

“It’s about commitment and letting people understand that, don’t avoid it. It’s your pride as a Ghanaian to know that your contribution is helping to build your country.

“The government is ‘more than confident’ that the level of the attrition rate ‘will not lead to job losses,’ he added.

Earlier this week, mobile money operators petitioned the minority caucus in parliament asking them to kick the E-Levy out the next time it comes to the house.

According to them, mobile money operations have created over a million jobs for Ghanaians, so any way to reduce their profits will negatively affect them.

Meanwhile, John Kumah has signaled the government’s intention to go ahead with the revised 1.5% despite rejection by the minority in parliament and opposition from part of the public.

“Why would an extra 1.5% make people feel like they’re no longer going [use mobile money] when they know that the extra 1.5% is even for their benefit because, at the end of the day, these taxes are for you and me.

The government met with the minority on Friday over the cut from 1.75% to 1.5%, but it was rejected.

The reduction was reportedly informed by telecom operator concessions to reduce their fees from 1% on transactions down to 0.25%.

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