Budget 2022: Current MoMo Charges And Expected New Charges

Finance Minister, Ken Ofori-Atta has announced the imposition of what is known as “E-levy” on all electronic transactions effective January 1, 2022.

He said this while reading the 2022 budget to Parliament on Wednesday, November 17, 2022.

According to him, it will be a 1.75 percent charge and it will be imposed on electronic transactions including bank transfers and mobile money transactions.

He explained that a part of the proceeds of the tax will be used to tackle unemployment, support entrepreneurship, support digitalization, improve road infrastructure and also enhance security.

“It is becoming clear there exists the 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.”

“After considerable deliberations, government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the ‘Electronic Transaction Levy or E-Levy’,” he said.

He added that the levy will not affect transactions that amount to 100ghc or less than that daily.

If the E-levy is approved by Parliament, it means that transferring money electronically using MoMo particularly is going to attract new charges.

The picture below captures both current and expected new charges:

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