Taxing Electronic Money Transfers In Developing Countries – The Case Of Ghana

Peter QUARTEY, Francis ANNAN, Daniel OSARFO and Agyapomaa GYEKE-DAKO

Abstract

Recent decades have seen the proliferation of mobile phones and the strong performance of the electronic transfer industry. The industry has evolved from a niche offering in a small number of markets to a mainstream financial service. With low- and middle-income countries (LMICs) facing enormous challenges in revenue mobilisation due to the high rate of informality, governments have noted the prospects of imposing electronic transfer taxes as an effective and inexpensive way of increasing tax revenues. This paper aims to set the tone for discussions on the immediate effect of Ghana’s electronic transfer taxes on transaction volumes and values and agent activity. We compare Ghana’s case with other countries in Africa who also imposed electronic transfer taxes.