A former Finance Minister and Tax Expert Seth Terkper says in a tweet that any taxation levied on fees charged by mobile money operators on transactions would amount to double taxation.
Mr. Terkper stated that income earned by MoMo operators are already subject to VAT and any separate tax will be duplication and “punitive” on the companies.
In a series of posts on microblogging site Twitter, the former Finance Minister explained that telecom services were included in the original VAT Act (Act 546) passed in 1999.
“Talk of MoMo or “umbrella” tax is duplication and punitive for firms & consumers. Telcos pay income (corporate) tax on momo fees & charge VAT/CST (now at higher 9 percent) on same. Govt should be clear, if it is talking about “another consumer or “umbrella” tax, likely in 2020,” he tweeted.
The Former Finance Minister’s concerns follow remarks from Communications Minister Ursula Owusu Ekuful that the government should be able to tax the transaction fees charged by mobile money companies.