Mobile Money agents meet GRA over proposed 10% tax on their earnings

The news of a ten percent tax expected to be paid by mobile money agents from their cash-out services has been met with opposition, as the agents say the tax is being imposed on them is uncalled-for.

The government, in a new directive, has asked telcos to deduct a 10% tax from the cash-out service of MoMo agents effective 1st July 2021.

The agents at an emergency meeting on Friday, June 25, 2021, said they can no longer bear any extra financial levy on their operations.

In a communiqué following the meeting, the Mobile Money Agents Association of Ghana (MMAG) said all efforts to engage the government and stakeholders on the tax have not been successful.

Members of the association were however able to meet with officials of the GRA on Tuesday 29^th June 2021.

Read also: BoG to pilot “e-cedi” cryptocurrency soon

According to them, they have been made to understand the tax will not affect their profit margins.

In an interview with Citi Business News, Secretary of the association, Evans Otumfuor said, they have also asked for a suspension of the implementation of the tax for further education and stakeholder consultation.

What we have requested for in the meeting is that they should grant with us some time frame to further engage with us. They should grant us some time frame to further engage us and equally engage the entire mobile money populace so that we can best align ourselves with this new directive. And for the record, we have been informed that the withholding tax is not final, although you may be paying it, at the end of the year, when you file your returns, and you realize that you have run at a loss, the law mandates that you come with proof that you have made a loss and then your withholding tax will be reimbursed into your business”.

He further revealed that the GRA will make known its decision on the request for the suspension of the tax by Thursday, 1st July 2021.

We have proposed to them that the deduction of the tax should be on hold, and we will get a response to them in the next two days”.