Sierra Leone’s mobile money providers Orange and Africell, have begun implementation of the Goods and Services Tax (GST) on all their financial services.

The implementation took effect today October 15, 2023, in line with the recently introduced Finance Act of 2023.

For consumers, the introduction of GST means it will now cost more money to use mobile money services.

According to Alfred Akibo-Betts, GST on fee-based financial services, which includes fees and commissions charged by banks, was part of the original GST Act 2009. However, the Finance Act 2021 made these supplies exempt. Banks had already implemented the GST charge a few months ago.

“It is important to note that GST will only be charged on the fee or commission charged by banks and mobile companies and not on the entire transaction amount.” He said.

 

🔵 Clarification on Africell Cash Out Charges with GST🔵

❕For 100: Old Charge: 3.05, New Charge with 15% GST: 3.51

❕For 500: Old Charge: 11, New Charge with 15% GST: 12.65

❕For 1000: Old Charge: 20, New Charge with 15% GST: 23

❕For 2000: Old Charge: 35, New Charge with 15% GST: 40.25

 

🟠 Clarification on Orange Cash Out Charges with GST 🟠

❕For 100: Old Charge: 3.05, New Charge with 15% GST: 3.51

❕For 500: Old Charge: 11.5, New Charge with 15% GST: 13.23

❕For 1000: Old Charge: 26.1, New Charge with 15% GST: 30.02

❕For 2000: Old Charge: 43.5, New Charge with 15% GST: 50.03

Kindly note that the 15% GST is applied on the transaction fees, NOT on the cashout amount.