GRA is not charging E-levy on merchant accounts

By Justice Dzido On Jul 4, 2022

The Ghana Revenue Authority (GRA) has denied reports on various social media platforms indicating that the authority will begin charging the 1.5 percent Electronic Transfer Levy (E- Levy) on merchant SIM cards.

According to the authority, the levy does not apply to specified merchant payments per section 2 (2) d of the Electronic Transfer levy Act, 2022 (Act 1075).

A statement from GRA urged the general public to disregard such a report as the levy does not apply to merchant SIMs as being reported.

The statement further added that the E-Levy does not apply to cash-out or cash withdrawals and cash Ins or cash deposits either at the bank or at a mobile money vendor.

In a release, the Authority clarified the issues, saying:

The attention of the Ghana Revenue Authority (GRA) has been drawn to misleading reports on social media that imply that from 1st July 2022, GRA will begin charging E-Levy on merchant SIMs. Other reports also suggest that Cash-Ins or deposits made through a merchant or vendor will attract E-Levy.

GRA wishes to react as follows:

Under Section 2 (2) (d) of the Electronic Transfer Levy Act, 2022 (Act 1075), the Levy does not apply to Specified Merchant Payments. Specified Merchant Payments are payments made to merchants through a payment service to a person registered with the GRA for the purposes of Income Tax or Value Added Tax (VAT). Customers making payments to such specified merchants will NOT be charged the E-Levy.
The general public should note that E-Levy is NOT charged on merchant SIMs, as is being purported. The E-Levy is only charged on a transfer from a customer to a Specified Merchant if the merchant is NOT registered with GRA for Income Tax or VAT purposes.
The E-Levy does not apply to Cash-Outs/cash withdrawals and Cash-Ins/cash deposits either at the bank or at a mobile money agent/vendor point. This means that Cash-Ins or deposits do not attract E-Levy and customers are NOT to pay any amount as E-Levy at a mobile money agent/vendor point. www.gra.gov.gh.

GRA uses this opportunity to encourage:

➢ Individuals to register for their Ghana Card and update their mobile money wallets and bank accounts with their Ghana Card Personal Identification Number (PIN),

➢ Merchants to register with GRA for Income Tax or VAT so their customers can enjoy E-Levy exemptions. GRA wishes to thank all partners for their continuous support.