MTN Ghana’s Chief Executive Officer, Stephen Blewett, has clarified that the Electronic Transfer Levy (E-Levy) cannot be abolished immediately, as the move requires regulatory approval. Blewett’s comments came after President John Dramani Mahama’s recent approval of legislation aimed at eliminating several taxes, including the E-Levy, Betting Tax, and Emissions Tax.

Speaking at MTN’s headquarters in Accra on April 2, Mr. Blewett acknowledged the public’s expectation but emphasized the need to follow the proper regulatory process. “There is a procedure that must be adhered to. I cannot abolish the E-Levy until I am instructed to do so. If I act prematurely, the Bank of Ghana would hold me accountable,” Mr.vBlewett explained.

Despite the government’s intention to remove the levy, the CEO made it clear that telecom operators like MTN must wait for official instructions before making any adjustments. He also underscored the negative impact the E-Levy has had on mobile money transactions, expressing optimism that its removal would revitalize the sector.

“The purpose behind scrapping the E-Levy is to reignite momentum in mobile money,” Blewett noted. “We expect that removing the tax will encourage more digital transactions and support greater financial inclusion.”

The E-Levy, introduced in 2022 at a rate of 1.75% and later reduced to 1%, taxed electronic transactions such as mobile money payments, bank transfers, and remittances. The levy has faced significant opposition, with critics arguing that it imposed an undue burden on citizens and stifled the growth of digital financial services.

Mr. Blewett assured that MTN would adhere to the regulatory framework and implement the change only once it receives official directives. “We will follow the process, and once the levy is removed, we expect mobile money to regain its strength,” he concluded.

Source:TheDotNews