Talk about the increase of money transfer and withdrawal rates by telecommunication operators in the country is on the rise as subscribers of Orange Money and MTN Mobile Money start feeling the pinch or learn of the increase of 4 francs CFA since January 1, 2025.
A tremendous amount of blame is now pouring on the heads of Orange Cameroun and MTN Cameroon who are the leading owners of the money transfer and withdrawal transactions. For example, not long ago, MTN Cameroon had announced a reduction of 25 percent of some of its transactions (or one of its transactions).
So, the sudden increase in the charges is already a cause of concern and causing perturbations among the millions of users in the ecosystem.
In the midst of rising subscriber dissatisfaction, Digital Business Africa is reported to have been clarified by a "source" in the Telecommunication Regulatory Board who spoke to KNews on anonymous, reported that the announcement to increase transaction fees to FCFA 4 as from January 1, 2025, was not the decision of any of the telecommunication operators to increase their fortunes, but rather a decision within the new financial law of 2025 to have a broader base to increase state revenue to use for its economic development.
The TRB contact was quoted as saying "this increase of FCFA 4 transaction does not relate to the telecommunications sector (as a whole). This is an increase in the tax on money transfers prescribed by the 2025 finance law article 2028".
In brief, further clarifications were that the tax on money transfers had been a new tax levy expressed in article 228 of the CGI subject to another law No. 2021/2026 of December 16, 2021 entered into force in January 1 of the Finance law of 2022 and known to have a broad application.
According to historical estimates, the money transfer tax levy on customers in 2020 was 0.2 percent with a projected revenue of FCFA 20 billion according Deloitte S.A, an intermediary. Despite the growing dissatisfaction already being expressed by users affected by it, some firms continue to express the economic benefits that accrue nationally.
KNews gathered that the levy on mobile money "offers African governments the leverage for income generation which is an alternative to external borrowing." According to the regulator's source, there are specific exemptions to this new finance law increase.
"This is a tax on all money transfers made within the country with the exceptions of bank transfers, payment of taxes, fees and other bills". According to BEAC, levies generated over FCFA 10.8 Billion in 2020 and over FCFA 12 Billion in 2021.
BY A CORRESPONDENT
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