Telecommunication companies providing the services of Mobile Money transactions, which acts as an easier form of bank transfer, have responses to complaints and concerns raised by citizens in the companies’ efforts to implement the dictates of the National Revenue Authority.
According to the newly enacted Finance Act of 2023, these companies are to implement a 15% Goods and Services Tax (GST) on all their financial services, towards ensuring revenue generation.
The implementation of GST though exiting on other sectors has never been requested for on mobile transactions and this new change had raised concerns of exorbitant calculations.
This new charges came into effect today 15th October 2023.
Due to this, Orange and Africell have clarified the cost of the newly imposed 15% GST.
Africell Cash Out Charges with GST
For 100: Old Charge: 3.05, New Charge with 15% GST: 3.51
For 500: Old Charge: 11, New Charge with 15% GST: 12.65
For 1000: Old Charge: 20, New Charge with 15% GST: 23
For 2000: Old Charge: 35, New Charge with 15% GST: 40.25
Orange Mobile Money Charges with GST
For 100: Old Charge: 3.05, New Charge with 15% GST: 3.51
For 500: Old Charge: 11.5, New Charge with 15% GST: 13.23
For 1000: Old Charge: 26.1, New Charge with 15% GST: 30.02
For 2000: Old Charge: 43.5, New Charge with 15% GST: 50.03
They further clarified that the 15% GST is applied to the transaction fees and not on the cashout amount itself.
This information has also been confirmed by the ministry of Information and Civic Education.