Here are all the transactions that fall under e-levy


Here are all the transactions that fall under e-levy

The electronic transfer levy (e-levy) of 1.5% was introduced in the 2022 Budget Statement to widen the tax net and rope in potential taxpayers in the informal sector.

The introduction of the e-levy by the New Patriotic Party (NPP) was greeted with disapproval from majority of the populace and experts as well.

The approved levy was introduced on the back of great strides made by Mobile Money in the digital financial space of the country.

Access to digital financial services has increased in Ghana and bridged the financial inclusion gap. Ghana has become one of the fastest-growing mobile money markets in Africa.

According to a Bank of Ghana report, by November 2021, Ghana had 47.3 million registered users, 18.4 active users and over GHs 80 billion (US$13 billion) value of mobile money transactions performed.

In Sub-Saharan Africa, some governments have attempted to impose e-levy rates on digital transactions with some failing and others succeeding.

One of the main concerns for the introduction of the e-levy is the type of transactions that will be taxed.

Parliament is now waiting on President Akufo-Addo to assent to the Electronic Transfer Levy (E-Levy) Bill.

The Majority in Parliament approved the E-Levy after the Minority walked out saying the tax is a tool to exacerbate the plight of the ordinary Ghanaian.

Below are the transactions that will be taxed;

  1. Mobile Money Transfers between accounts on the same Electronic Money Issuer (EMI)
  2. Mobile Money transfers from an account on one EMI to a recipient on another EMI
  3. Transfers from bank accounts to mobile money accounts
  4. Transfer from mobile money accounts to bank accounts;
  5. and Bank transfers on a digital platform or application which originate from a bank account belonging to an individual, to another individual.

However, the e-levy will not cover the following transactions;

  1. Cumulative transfers of GHS 100 per day made by the same person;
  2. Transfers between accounts owned by the same person;
  3. Transfers for the payment of taxes, fees, and charges on the platform;
  4. ElectronicClearingofCheques;
  5. Specified merchant payments (i.e. payments to commercial establishments registered with GRA for Income Tax and VAT purposes); and
  6. Transfers between principal, master-agent, and agent’s accounts.

Please continue to read the full statement HERE .

GNBCC | News