The Chief Executive Officer Of AFB Ghana operators of MTN’s Qwikloan service has hinted that the Qwikloan loan service will stop suppose the e-levy is implemented.
A 1.75% tax on digital financial transactions was proposed in the 2022 budget statement presented before Parliament by the Finance Minister, Ken Ofori-Atta.
Ken Ofori-Atta explained that the tax measure was to raise revenue to support job creations construction of road infrastructure, cybersecurity, and digital infrastructures.
Well, unfortunately for Ken Ofori Atta and the majority in parliament, the minority group in Parliament rejected the 2022 budget as a result of the proposed e-Levy and other concerns raised in the budget.
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.
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The service, dubbed, “Qwikloan” is fast, easy, and convenient which enables customers to access loans using their MTN mobile money platform.
Qwikloan is a 30-day loan. It has flexible payment terms with an interest of 6.9% but a default payment of 12.5% interest charges. It does not need a bank account and guarantor to access it.
However, a Facebook post on November 30, 2021, by the CEO of Afb Ghana Arnold Parker to celebrate four years anniversary, forewarned that the service will fold up should the government go ahead with the e-levy in the current shape.
“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 4 years that Quickloan has been in existence, we have disbursed over Ghc7billion 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,” Arnold Parker stated.
He furthered “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”.