Mobile Money Taxes: Knowledge, Perceptions and Politics. The Case of Ghana

Published: Feb. 1, 2024

This study investigates the intricate dynamics surrounding implementation and reception of mobile money taxes, focusing on Ghana as a case study. Consumer-level particularly controversial, have sparked large-scale protests, prompting policy revisions in various countries, including Uganda, Cote d'Ivoire Benin. Ghana’s electronic transfer levy (e-levy) not only followed this trend public dissent, but also triggered country’s first budgetary rejection since 1981. The strong reactions, by two rounds revisions, makes understanding what lies behind perceptions especially important to inform ongoing debate within region.

Language: Английский

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The E-Levy and Merchant Payment Exemption in Ghana

Published: Feb. 1, 2024

In this paper we look into the increasing use of electronic payment technologies in low-income countries (LICs), with a particular focus on mobile money Ghana. Our study evaluates effectiveness tax exemptions for incentivising businesses and customers to adopt digital merchant payments, shaping their perceptions system. Specifically, investigate impact an exemption embedded Ghana's transfer levy (e-levy), implemented May 2022. Through mixed-methods approach, involving survey data from 1,065 group discussions Ghanaian citizens, explore barriers drivers merchants' (businesses’) registration payments. We assess methods customer preferences, as well findings highlight that larger digitally- financially-inclusive are more likely The appears have encouraged leading shift away personal accounts. However, cash remains prevalent among both users non-users money. Merchants using exempted service express satisfaction various aspects e-levy policy, show greater trust government fairness offers valuable insights adoption payments LICs, behaviour perceptions. provide policy recommendations aimed at promoting uptake merchants, enhancing administration.

Language: Английский

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Getting Targets Right: How Much Revenue can Lower-Income Countries Raise?

Published: March 11, 2024

Lower-income countries have huge financing needs. While tackling the climate challenge and achieving Sustainable Development Goals requires substantial capital investments, Covid-19 epidemic has highlighted an urgent need for spending on health social protection. One recent report estimated investment needs low- lower-middle-income (henceforth, lower-income countries) at US$3 trillion per year by 2030. This represents about 7 cent of these countries’ combined GDP, is a herculean challenge, particularly low-income countries. loans long played central role in bridging gap, rising interest rates made this even more difficult, debt servicing costs are increasingly making up frightening proportions government spending. And yet, average, raise just under 13 GDP taxes, versus over 35 average OECD economies, rate growth their tax ratios remains slow.

Language: Английский

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Are Digital and Traditional Financial Services Taxed the Same? A Comprehensive Assessment of Tax Policies in Nine African Countries

Published: April 21, 2023

This background report looks at tax implications for those providing and using digital financial services (DFS), gives general observations as to whether DFS in Africa are taxed the same traditional (TFS). There is no categorical answer this question. It varies country by country, depending on specific arrangements their legal framework. Therefore, a country-specific approach necessary. analyses key legislative, regulatory policy instruments compare framework nine African countries – Burundi, Côte d’Ivoire, Ghana, Kenya, Rwanda, South Sudan, Tanzania, Uganda Zimbabwe. The studies illustrate diverse experience across economies, tension between need greater mobilisation of domestic resources desire see rapid roll-out infrastructure services. cross-country assessment highlights areas where situation different providers users, compared institutions actors. We present number preliminary considerations lessons learned. These can help shape an optimal environment, reduce friction, enhance beneficial competition market, minimise any negative consequences users that arise within taxation all studied.

Language: Английский

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Measurement and Mirage: The Informal Sector Revisited

Published: Jan. 29, 2024

Recent years have seen an increasing availability and usage of measurements informal sectors as the basis scholarship policy advice on causes consequences informality. This has created impression a consensus around clearly conceptualised operationalised object study – that when we talk about sector, know what are talking about. paper argues this is largely mirage. It suggests underneath increasingly accepted measurements, actively masked by them, there remains fundamental conceptual confusion continuing diversity in understandings sector is. What should be questions definition been moved ‘downstream’ into specifications statistical models resulting lack transparency emergence feedback loops between common conceptions methodological assumptions. led large part current literature to generate potentially misleading insights substantial development discussions taxation, registration, social protection. reviews these issues both best practices revised definitions order address them.

Language: Английский

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Towards Gender Equality in Tax and Fiscal Systems: Moving Beyond the Implicit-Explicit Bias Framework

Published: March 9, 2024

The subject of gender and taxation has gained increasing traction in policy circles. Most existing evidence is based on the implicit explicit bias framework developed mid-1990s. This been useful promoting research this area, tax reform to address biases. However, as biases become increasingly rare, we argue that no longer fit for guiding towards improved equity equality. importantly, ‘tax-bias’ framing creates impression solution rectifying underlying problem lies reforming system. We propose an alternative approach starts with a clear focus goal equality, from perspective broader feminist fiscal agenda. It also backs progressive administrative agenda generates sufficient revenue fund policies while pursuing equity.

Language: Английский

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The Ghana E-Levy: Impact on the Usage of Mobile Money

Published: July 8, 2024

The taxation of digital financial services is on the rise in Africa. Ghana one last countries to introduce it – aiming raise resources for national development, and limit informal economy. introduction Electronic Transfer Levy (E-Levy) raised several protests concern among population mobile money operators, still doubtful whether tax will adequate resources. This paper estimates impact E-Levy usage user perceptions. We use data from Chamber Telecommunications (sending, receiving, payment, withdrawals) at level disaggregated by region, nationally representative survey collected ICTD individuals businesses. Our analysis also investigates revenue, with provided Revenue Authority. Findings reveal that, despite a short-term decrease usage, has had positive long term, particularly respect payment transactions formal merchants. findings show that there lack knowledge regarding E-Levy's design details across all regions, indicating need improved awareness. Finally, our shows revenue been far below initial projections, raising questions about its ability development.

Language: Английский

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Taxing Mobile Money in Kenya: Impact on Financial Inclusion

Published: June 1, 2023

Many people argue that mobile money has the potential to increase financial inclusion and improve livelihoods of poor in Africa. However, while many African governments impose specific taxes on transactions, very little is known about their effect use services. This study assesses short- long-term impact tax transfer fees Kenyan government introduced 2013. The tax, more specifically an excise duty, was imposed incurred all including money. It at 10 per cent increased 12 2018. Our analysis two parts. We country-level data see if affected – transaction values volume number active agents. In addition, we four rounds nationally representative survey estimate changes after introduction tax. find duty did not have a significant different aggregated indicators relating shows may reduced rate services by such as sending receiving money, compared were not, like savings paying bills. Importantly, amounts transacted change, users send receive within households less regularly. seems detrimental poorer households, which likely be financially included before introduced. Larger also show negative effects URI

Language: Английский

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A test of behavioural changes to electronic levy: Evidence from mobile money transactions in a developing country

Cogent Economics & Finance, Journal Year: 2023, Volume and Issue: 11(1)

Published: May 4, 2023

Even before its introduction, the electronic levy in Ghana stirred up different behavioural reactions from public, despite intention to use proceeds provide better public services. As a result, this study examines some of these changes using pre-tax survey data on proposed levy. Using sample size 2,810 individuals with mobile money accounts, we estimate multivariate logit model marginal effects determine associated drivers individuals' tax. The results show that is likely have an immediate impact individual's behaviour positive and negative ways. Thus, while about 88% respondents indicated they are stop or reduce their transactions, approximately 12% rather reaffirmed willingness keep perhaps increase mobile-money transactions. Furthermore, find evidence income, marital status, objective knowledge, trust government, implementation timeframe statistically significant determinants tax Ghana. suggest varying responses Ghana, which threaten realization expected revenues. We recommend proper education advocacy at all levels keen consideration implement later, perhaps, when there more government's ability revenues prudently.

Language: Английский

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Do the People Matter in Policymaking in Ghana? A Reflection on the E-Levy and Debt Exchange Programs

PanAfrican Journal of Governance and Development (PJGD), Journal Year: 2024, Volume and Issue: 5(1), P. 56 - 77

Published: Feb. 29, 2024

The extent to which the masses have a say in matters concerning their lives is crucial governance. It makes significant amount of knowledge that people vote for elected policymakers make policies will better off and not opposite. However, making policies, views who either benefit or suffer ramifications are taken into consideration. Therefore, content analysis methodology has been employed this study systematically analyze secondary sources about recent adoption E-Levy policy Debt Exchange Program ascertain whether mattered adopting implementing these policies. raised lot controversies, with public agitating calling its termination. government Ghana, being keen on continuing implementation as only way out country's economic hardship, raises questions. After systematic literature, paper argues both were passed without involvement people. implication government’s failure adopt participatory policymaking approach accounts citizenry's loss trust government.

Language: Английский

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