The Minister of Communications, Mrs Ursula Owusu-Ekuful, is pushing for Mobile Network Operators (MNOs) to be taxed for the profit they make on mobile money transactions.
At a press conference in Accra on Thursday morning [November 14, 2019, the Minister said the operators generate some GH¢71 million monthly on the transactions, yet that money remains untaxed.
“This is of particular interest to me but this is where the Finance Minister and I diverge because I think that 71 million [cedis] which is generated by the operators in transaction fees, they ought to pay taxes on that revenue to the State.
“We are still having conversations about that,” she added.
Data from the Bank of Ghana last year showed that mobile money transactions increased from GH¢155 billion to GH¢233 billion representing 43 per cent growth in just a year.
It also showed that the volume of transactions on the mobile money platform increased from 2017 to 2018 reached GH¢1.4 billion. The value of transactions had also seen a significant increase from 2012 to 2018. For instance, in 2012 total transactions, reached GH¢594 million and increased significantly every year to hit GH¢233 billion in 2018.
In June, the World Bank declared Ghana the fastest-growing mobile money market in Africa with registered accounts increasing six-fold.
This undoubtedly translates into huge profits for telecom companies and the Communications Minister wants to ensure that the State does not miss out on revenue from that sector.
“Nobody is talking about actual mobile money transactions that are conducted by individuals. However, I am interested in the revenues that the mobile network operators earn from the transaction fees that own-users of the services pay to them.
“And I think the GRA [Ghana Revenue Authority] ought to have a conversation with them about that,” she added.
Source: graphic.com.gh
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Elsewhere everything that generates income or revenue is taxed. That is the way to go in the long run.
I think,there should be at least 15 pesewas on every transaction that would be made through the Momo platform. It may look small, but its accumulation effects would be great
Do not show your ignorance here. Read a little and educate your self. There is direct and indirect. What you earn is directly taxed and what you want to consume of which you hold the discretion not to is indirectly taxed. The charges received from the Momo transactions go to the Telcos as income and at the end its taxed by government as corporate tax. If you tax it before it forms part of the income the Telcos may be double taxed or they would have to set it aside from tax
LISTEN TO THE SO CAĹED CHARTERED ACCOUNTANT WITHOUT CRITICAL THINKING. PLEASE BY YOUR LOGIC WORKERS NÈD NOT PAY ANY TAX ON WHATEVER THEY BUY SINCE THEIR SALARIES ARE ALREADY TAXÈD.
I hate it sometimes when this woman talk coz I don't feel the sense when she sometimes speaks but for this I support her fully if only that's the way it stands we need to Tax them in everything coz they will develop new ideas to make money from us and will not build any social building that will help the people they making money from
why shouldn't it be taxed? Ghanaian she learn how to pay tax
The lawyer is once again showing her ignorance on accounting matters. Madam, revenue generated by telecommunication companies on mobile money transactions is part of the operating income. This is taxed accordingly when preparing the annual financial statements. Please get yourself educated before you come out on financial matters.