MTN Qwikloan will collapse if E-levy is implemented – Operators warn
Arnold Parker, the Chief Executive Officer of Afb Ghana, operators of Qwikloan services on MTN, has hinted at the cessation of their operation if the proposed 1.75% Electronic Transaction tax (e-levy) is implemented.
According to him, the outfit, through Qwikloan, within five years of existence, has been able to disburse over GHS 7 billion to well over 4.2 million people.
He wrote: Four years ago today, together with our partners MTN and Jump, we launched what has arguably become Ghana’s most utilised financial product -Quick loan.
In the four years that Quickloan has been in existence, we have disbursed over Ghc7 billion to well over 4.2 million people.
Interesting that the Quickloan anniversary comes at a time when heated discussion on the e-Levy rages on.
The 1.75% tax was announced by the Finance Minister, Ken Ofori-Atta, during the 2022 budget presentation on Wednesday, November 17, 2021.
Mr Ofori-Atta explained the levy is to increase tax revenues for the country, adding that it is occasioned by the surge in mobile money transactions during the Covid-19 pandemic of 2020.
According to the Finance Minister, Mr Ofori-Atta, the total transactions for 2020 were estimated to be over ¢500 billion compared to GH¢78 billion in 2016 just five years ago.
His announcement has sparked controversy in the country with the Minority in Parliament declaring they will resist the implementation.
A section of Ghanaians, particularly operators of Mobile Money (MoMo) have expressed fear the new levy will collapse their businesses.
In a social media post to commemorate the Qwikloan anniversary, Mr Parker stated plugging the e-levy rate into their finances will mean they would have to bow out of the market.
He added: If I plug in the proposed e-Levy rate into our financials, Quickloan would cease to exist within a year.
Yet it is a product like Qwikloan, which has been a lifesaver for millions in their times of need, that has the potential to transform this economy.
MTN Ghana, in partnership with Afb Ghana, launched the Qwikloan service in 2017 to provide convenience to customers in times of need to enhance their business.
It is fast, easy, and convenient which enables customers to access a 30-day loan using their MTN mobile money platform.
It has flexible payment terms with an interest of 6.9% but a default payment of 12.5% interest charges.