Panic withdrawals hit Volta as E-levy takes off

Some mobile money merchants in parts of the Volta region have recorded a high increase in mobile money transactions with withdrawals topping on Saturday.

Scores of queues were seen in Ho, the regional capital and some parts including Akatsi South Municipality, Ketu South and Hohoe.

Long queues build up with a pronounced development being the Mighty Gas Merchant joint near the Ho Teaching Hospital, where beyond 2030 hours people were still transacting business aside queues found at Ahoe Round-About area, Bankoe and SSNIT Flats enclave.

They claimed the ongoing massive withdrawals from several wallets is because of the passage of the Electronic Transaction Levy (E-Levy) in March by Parliament.

At the SSNIT area, there were withdrawals of large sums with clients insisting their transaction went through before the E-Leevy came to effect at midnight with withdrawals and deposits ranging between GHC 3,000 and GHC 1,000.

Some operators at the Central Market Square joints have claimed they do not see how clients would bypass the mobile money platform, saying there are there’s no visible signs of clients doing that.

Akpene Akakpo, alleges the “people are so addicted to the mobile money platform, and it will be a shocker to see them not patronising it.”

They told the Ghana News Agency (GNA) that their action was to avoid the deductions on their transactions by either emptying their mobile money wallets or make huge transfers before the implementation date.

A cross section of mobile money users in Akatsi, who spoke to the GNA stated that the move to cash out their monies would help them to dodge the tax deduction.

Mr Nutsugah Agbesi, a businessman, told the GNA the tax is multiplicative and would not be in the best interest of the ordinary citizenry.

Mr Sedinam Dorsey Agozie, owner of Determination Empire, a popular mobile money merchant in Akatsi, disclosed to the GNA hundreds of Momo users were rushing to withdraw thousands of cedis in recent times with only few doing deposits.

“Other mobile money operators and I in town have been hit by some form of unusual withdrawals from the general public which is putting pressure on us,” he said.

However, some individuals also called for calm as the government continued to put some measures in place for the development.

There was calm at the merchant joints across the region as the implementation kicks in today.

President Nana Addo Dankwa Akufo-Addo on Thursday, March 31, 2022, assented to the Electronic Transaction Levy into law.

The implementation of the levy commences today, Sunday May 1 as announced earlier by Mr Ken Ofori-Atta, the Minister for Finance.

Meanwhile, the Ghana Revenue Authority has revealed some digital transactions that would not attract the 1.5 per cent levy to include remittances from Ghanaians abroad, cash-in and csah-out from mobile money accounts.

It said payments of utility bills and purchases of airtime are exemptions provided the utility provider is registered with the GRA for income tax or VAT.

The GRA further noted that withdrawals from ATMs are also exempted from the 1.5% charge.