Gov’t Should Expand MoMo, Not Increasing Taxes – MTN Boss

The General Manager of MTN Mobile Financial Services, Mr. Eli Hini, says government should focus on enabling the growth of mobile money services in the country, instead of levying taxes on the industry

Speaking at the MTN annual Mobile Money (MoMo) Shareholder Workshop in Accra yesterday, he said: “Rather than levying taxes on the fledgling mobile money, government should consider enabling the growth of mobile money services”.

According to him, taxing mobile money transaction in Tanzania did very little to support public finances.

“It is important that Ghana does not consider going in that direction as the benefits out-weigh the exaggerated gains from taxes”, he urged.

Touching on the impact of taxes on mobile money services, the financial expert said tax would discourage trade and commerce, affect the formalization of the economy and interfere with financial intermediation.

“Imposing taxes may increase the percentage within the poverty bracket” He explained.

He listed a catalogue of benefits the country would continue to enjoy without levying taxes.

According to him, mobile money contributes heavily to financial inclusion as it enables more efficient payments for goods and services, reduces the informal economy, and creates employment.

“The positive externalities of mobile money spill over into other sectors such as agriculture, healthcare, and education. Introducing taxes will erode these gains”, he emphasized.

By: Sally Gonyo