That idea that every move of money should attract a transactions tax?
High-tech, higher tax: Ghanaians face punishing new levy on electronic payments
From May, a 1.5% charge will hit mobile phone transactions above 100 cedis (£10). In the country’s bustling markets, people are angry and anxious
Turns out folk don’t like it very much.
Mavis Bampoe, 51, founded the Vision Montessori school in Accra 10 years ago. “Before coronavirus, I used to have parents queueing at the cashier’s cubicle to pay school fees,” she says. “Then parents transitioned to making mobile payments that were faster and more convenient”.
But they have already begun reverting to cash payments in recent months, she says, since it became clear that the e-levy was coming. “If a parent wants to pay fees, they must first transfer money from their bank account to their mobile money wallet. That attracts a charge from the telecoms companies, plus another 1.5% of the e-levy.
“After the money has been transferred into their wallet, that parent will now have to send it into my school’s wallet, and that is going to attract another telecoms charge, plus the 1.5% e-levy.”
Yep, people just arbitrage around the tax.
Funny how that works, isn’t it?
Well, I must admit I’ve always thought that the push towards e-money would end up in something like this.
In passing I must admit I’m impressed by the picture of Kaneshie market. As always I can see no reason why my taxes should be wasted on foreign aid to such a prosperous place.
This is why Spud is a proponent of a cashless economy… No way to run.. No way to hide..
Is what he and his ilk like to think….
“It’s arbitrage, Jim, but not as we know it”.
Solution – just ban cash!
Grikath
For some reason you have generated an image of Murphy typing his bs while lip syncing Martha Reeves and the Vandellas ‘Nowhere to Run’. Maybe I should get out more…
And zis is vy ze next step in ze Great Reset vill be to ban ze cash.
Ban meat.
Ban cars.
Ban oil.
Ban flying.
Ban private property.
Ban, ja!
“I’ll take ‘Reasons Why Africa Is A Shithole’ for $100, Alex.”
A private school cannot collect fees, leaving poor pupils at the mercy of sub-standard State schools? I suspect Murphy thinks that’s a benefit rather than a cost.
This is a nice salutary example: they’ve buggered up by setting the tax too high so that people notice. They notice in particular because, whilst I’m sure it was sold as “1.5% is piddly – you’ll never notice”, they forgot that it’s not just the one bite of 1.5%.
The problem here is that we cannot ever let an FTT get through the door, even at a really teeny rate, because the rate will never stay teeny.
So this is actually good news – actually have a real example to show the bastards that it’s a dreadful thing to do.