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- Ghana is among several nations considering or had already, taxing virtual payments. This could be problematic on several levels.
- After folks have brought into digitization, involving virtual assets. It is a citizenry who has embraced digital assets.
- A spare parts retailer told a news agency that he is not willing to pay with MoMo anymore du e to taxation.
Tax Could Be An Issue
Ghana is among various nations considering or had already applied, taxing virtual payments. Initiating next month, mobile transactions exceeding 100 cedis or around $13, will be liable for a tax of 1.5%. This can give birth to problems on several levels.
There is this notion of double taxation and it creates security concerns for vendors in marketplace who are turning their heads back towards cash economy. This is a regressive tax, where impoverished will get affected the most, but beyond that it is probably an adverse policy.
Ghana has worked towards digitization. For more than half a decade, nation has quickly stepped ahead in the list of African countries which tech organizations would want to consider.
Several organizations have decided on Accra as home to their African activities. Millions remain poured into Ghana startups. It is an inflating tech scenario.
However, after folks have initiated welcoming the step towards digitization, involving virtual assets. It is a citizenry who has embraced cryptocurrencies. And authorities have established a common sense strategy to roll out a CBDC.
However, for rolling out a CBDC, beyond just developing the technology, folks should be offered knowledge regarding that, so that they can acquire latest technology. Best of the technologies are of no use if no one is utilizing it at all.
Also Read: Dubai Café, Bake N More, Accepts Cryptocurrency as Payment
The Bait and Switch Scenario
In a nation where folks were on board, a promising indication that preceding release of a CBDC, politicians in charge did the unbelievable. They pulled a bait and switch.
As soon as population was utilizing mobile transactions, getting at ease with technology and pleasured with perks it offered to them — authorities decided to put taxes on them. Now, people who were once among digitized, are turning back towards cash economy. We can’t blame them.
A spare parts retailer told a news agency that he is not willing to use MoMo as a payment method as he thinks he is going to be taxed on value for the fuel. This does not make sense to him. He thinks that folks are being deceived and now reality is dawning at them now.
Monetary techs are booming unlike any time in history. Blockchain tech, involving crypto assets and other virtual assets, are genuinely shifting the way the world engages with money.
Penalizing folks for adopting these changes will put a nation behind, technically saying, for decades to come. The economic step forward is much higher than the perks of short term solutions.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
