Decline in MoMo usage will not lead to job losses – John Kumah

John Kumah 20212121211213

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

Minority rejects revised rate on 1.5%

E-Levy to be re-laid before parliament on February 1, 2022

Deputy Finance Minister, John Kumah, has stated that government has put in place the necessary measures to ensure people continually use mobile money services after the implementation of the Electronic Levy.

According to him, government’s research shows that there will be a 24 percent decline in the usage of mobile money services in the first six months of the introduction of the E-Levy, but will not affect the jobs of the MOMO operators.

“The research also told us what should be done to bring back these people after a while, and we have all these things in place”.null

“It is a matter of engagement and letting people understand that, don’t avoid it. It is your pride of place as a Ghanaian to know that your contribution is helping to build your country.”

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

Mobile money operators earlier this week petitioned the minority caucus in parliament asking them to kick against the E-Levy when next it is put before the house.

According to them, mobile money operations have created over a million jobs for Ghanaians, thus any means to reduce their profit will affect them negatively.

Meanwhile, John Kumah indicated government’s intention to go ahead with the revised 1.5% despite the Minority in Parliament’s rejection and opposition from a section of the public.null

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

Government on Friday met with the Minority over the reduction from 1.75 percent to 1.5 percent but it was rejected.

The reduction was said to have been informed by concessions from the telcos to reduce their 1 percent charge on transactions by up to 0.25 percent.