Is having to pay 1.5% tax on all your digital transactions frustrating for you? Do you want to avoid paying E-Levy tax payments on your MTN Mobile Money (MoMo) transactions? This is the right article for you!
Paying 1.5% tax on all your MTN Mobile Money transactions does not end there. An additional charge set by the telco company is added to your charges making it even more frustrating.
1% of the transaction’s value was formally charged for the MTN MOMO regular transfer fee. However, it has recently increased to 2.5, as the government also deducts 1.5% of each transaction that exceeds GHS 100 as E-Levy.
This article will show you 6 ways to avoid E-Levy Tax on MTN Mobile Money transactions.
1. Use Cash Transactions
Mobile Money Interoperability (MMI) was introduced to aid adaptation to a cashless economy. The MMI service allows direct and seamless transfer of funds from one mobile money wallet to another mobile money wallet across networks. It is not bound to be a success although it has been successful over so many years. If you feel it is not helpful enough to you because of some e-levy tax charges, you can always switch back to cash transactions.
2. Perform A Maximum GH₵100 Transaction Daily
As of Friday, March 20, 2022 Mobile Money transactions under GH₵100 will not be charged, according to a statement from the Bank of Ghana. So what are you waiting for, you can send and receive up to GH₵100 daily without any e-levy charges. However, MTN will deduct the regular charges of 1% on any transaction.
This means when your transaction exceeds GH₵100 on both sending and receiving you pay a total of 2.5% charge.
3. Use Bank Cheques
Probably you on deal with huge sums of money, the GH₵100 will not be of help to you, so what do you do? You can make use of Bank Cheques. All you have to do is request a Bank Cheque Book and start writing cheques for your transactions.
The only downside of this is that you may have to spend money on transportation but do not worry. Compare your transportation to the a e-levy charge on the amount of money on your transaction, then make a decision.
4. Use Money Transfer Apps
This is very helpful when dealing with cross-Africa transactions. I mean transactions abroad to Ghana. Some Money Transfer apps can be used even within Ghana.
Check out some money transfer apps you can use to avoid E-Levy tax on MTN Mobile Money transactions.
5. Use MTN Merchant SIM for Mobile Money
You can also use an MTN Merchant SIM for your MoMo transactions to avoid E-Levy Tax on MTN Mobile Money transactions especially if you are a business owner. Becoming a MoMo merchant is a simple process here:
You can then send money to anyone without charges.
6. Use the Pay Bill Option
Lastly, you can use the MoMo Pay Bill.
When using MTN Mobile Money in Ghana, the MTN MoMo Pay has continued to be among the least expensive options.
MTN charges a 0.2% fee on transactions between GHS 1 and GH₵50.00. MTN Ghana charges a fixed cost of GH₵2.00 for any transactions valued at more than GH₵1000.00.