Momo users in areas of Volta are experiencing panic withdrawals as a result of the E-Levy.


 Momo users in areas of Volta are experiencing panic withdrawals as a result of the E-Levy.

In portions of the Volta region, certain mobile money shops have seen a significant rise in mobile money transactions, with withdrawals topping the pact on Saturday.


Hundreds of people queued in Ho, the regional capital, as well as other areas such as Akatsi South Municipality, Ketu South, and Hohoe.


Long lines formed, with one notable exception being the Mighty Gas Merchant joint near the Ho Teaching Hospital, where people were still transacting business after 2030 hours, in addition to queues at Ahoe Round-About region, Bankoe, and SSNIT Flats enclave.


The continuous huge withdrawals from multiple wallets, they alleged, are due to Parliament's adoption of the Electronic Transaction Levy (E-Levy) in March.


Withdrawals of huge quantities were made at the SSNIT area, with clients asking that their transactions be completed before the E-Leevy took effect at midnight, with withdrawals and deposits ranging from GHC 3,000 to GHC 1,000.


Some Central Market Square establishments state they don't see how customers would avoid using the mobile money platform, claiming there are no clear indicators of customers doing so.


"People are so glued to the mobile money platform," says Akpene Akakpo, "that it will be shocking to see them not patronizing it."


They told the Ghana News Agency (GNA) that they were emptying their mobile money wallets or making large transfers before the implementation date to avoid the deductions on their transactions.


According to a cross section of mobile money users in Akatsi who spoke to the GNA, cashing out their funds would allow them to avoid the tax deduction.


A merchant, Mr Nutsugah Agbesi, told the GNA that the tax is multiplicative and would not be in the best interests of common citizens.


Hundreds of Momo users have been flocking to withdraw thousands of cedis in recent months, according to Mr Sedinam Dorsey Agozie, proprietor of Determination Empire, a famous mobile money merchant in Akatsi.


"Other mobile money operators in town, including myself, have been impacted by some strange withdrawals from the general population, which is putting pressure on us," he said.


Some people, however, have appealed for calm while the administration continues to put measures in place to address the situation.


As the implementation begins today, there was a sense of serenity in the commercial establishments around the region.


On March 31, 2022, President Nana Addo Dankwa Akufo-Addo signed the Electronic Transaction Levy into law.


As mentioned earlier by Mr Ken Ofori-Atta, Minister of Finance, the levy goes into effect today, Sunday May 1.


Meanwhile, the Ghana Revenue Authority has announced that some digital transactions, such as remittances from Ghanaians overseas and cash-in and cash-out from mobile money accounts, will be exempt from the 1.5 percent fee.


Payments of utility bills and purchases of airtime are excluded from income tax or VAT if the utility supplier is registered with the GRA.


Withdrawals from ATMs are likewise excluded from the 1.5 percent fee, according to the GRA.

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