E-Levy implementation starts May 1

The Ghana Revenue Authority (GRA) has announced May 1st, 2022 as the implementation date for the Electronic Transaction Levy (E-Levy).

In a notice, the GRA said the decision was influenced by the passage of the E-Levy Bill by Parliament.

The bill initially imposed a 1.75 per cent tax on all electronic transactions and money transfers, but the rate was reduced to 1.5 per cent before its passage.

Areas of coverage

The levy will apply to mobile money transfers done between accounts on the same electronic money issuer and mobile money transfers from an account on one electronic money issuer to a recipient on another electronic money issuer.

Others are; transfers from bank accounts to mobile money accounts and transfers from mobile money accounts to bank accounts

However, bank transfers on an instant pay digital platform or application originating from a bank account to an individual subject to a daily threshold will be determined by the Minister of Finance.

The E-Levy was introduced by the government in the 2022 Budget on basic transactions related to digital payments and electronic platform transactions.

The rate would apply to electronic transactions that are more than ¢100 daily. This is different from the percentage telecommunication companies charge on mobile money transactions.

Akufo-Addo signs E-levy Bill into law

President Akufo-Addo on Thursday, March 31, 2022 signed the E-levy Bill into law.

As a result, the Bill, which was passed by Parliament on Tuesday, March 29 has now become a binding law which will be operationalised as a revenue measure across the country.

Parliament approved the controversial Electronic Transactions (E-Levy) Bill on Tuesday afternoon.

This decision was reached after the Consideration Stage was completed by a Majority-sided House on Tuesday, March 29, 2022.

It was considered under a certificate of urgency.

The tax, which has become a subject of debate among Ghanaians is expected to rake in ¢4.5 billion in tax revenue for the country.

 

Source: Joy Business