New policies, new behaviors: How digital taxation shapes mobile money use in Ghana

Abstract The transition from traditional to digital payment platforms is reshaping domestic revenue mobilization, with significant impacts on sectors like agriculture, health, business, education and economy. This transition, while presenting both challenges and opportunities, has the potential to foster economic growth and boost revenue mobilization. This paper investigates how digital taxation or electronic levy (e‐levy) has shaped mobile money (MoMo) adoption in Ghana since the introduction of e‐levy on digital financial transactions. The underlying theories supporting this study include the Technology Acceptance Model (TAM), Social Norm Theory (SNT), and Expectancy‐Confirmation Theory (ECT). A cross‐sectional design was employed, and data was collected from 206 participants (mobile network subscribers) through a self‐administered online survey conducted and applied a partial least square structural equation modeling technique. The findings indicate that inherent innovativeness, the structure of the tax, and social tax compliance norms significantly influence citizens' compliance attitudes towards e‐levy in the context of a developing country. Conversely, the study found that potential taxpayers' attitudes towards e‐levy do not determine their intention to pay (actual use) e‐levy. In this respect, recommendations to drive the digital taxation agenda among government revenue agencies in developing countries are (i) continuous inherent innovativeness on the part of the government, (ii) ensuring compliance attitudes towards e‐levy, (iii) proper structuring of the tax components and (iv) ensuring ease of use of the system. These findings provide governments and revenue agencies, particularly those in developing countries, with valuable insights into citizens' behavioral change towards digital taxation on MoMo transactions. An effective convergence of the determinants discussed in this research would expedite government mobilization efforts for electronic levies and promote development.