By Metohuey Michael Adoglo
Recent business reports from Central Africa reveal the Bank of Central African States have called for relaxed taxes on mobile money transactions in the region to allow the development of the mobile money sector.
In its report, the BEAC indicated that in its capacity of adviser and facilitator for states’ journey in the digitalization of payment services; it has to warn of the consequence of taxes imposed on electronic money transactions with the main consequence being a slowdown in financial inclusion.
This lobby from the central bank comes in a context where, in Cameroon, Mobile money transaction costs have risen several times over the past few years.
To provide context, In 2012 the transactions were free but over the years, fees were enacted to the cost of 2% in transaction fees. For operators, those transaction costs include taxes. So, according to the BEAC, should that taxation dynamic continue, the mobile money sector could be hindered, therefore, affecting financial inclusion.
