The new Electronic Transfer Levy Act of 2022 (Act 1075) which is popularly known as E-Levy has been finally signed into law by the President on Thursday, March 31, 2022.
There is so much talk about the new Electronic Transfer Levy or E-levy which will start imposing 1.50 percent fees on most electronic transactions. We all know that the Minority in Parliament walked out before the Majority approved the tax, claiming it will deepen the misery of ordinary Ghanaians.
Initially, the bill was seeking to impose 1.75 percent which was cut down to 1.50 percent on electronic transfers and is now projected to generate GH6 billion in tax revenue for the government.
From what the Ghana Revenue Authority (GRA) said, the structures have been altered to guarantee tax collection of the e-levy.
For those wanting to know when the whole thing will start, Ghnewslive is here to confirm that the new Electronic Transfer Levy Act will take effect on May 1, 2022, as announced by the Finance Minister.
Transactions E-Levy will cover
i. Mobile money transfers done between accounts on the same electronic money issuer
ii. Mobile money transfers from an account on one electronic money issuer to a recipient on another electronic money issuer
iii. Transfers from bank accounts to mobile money accounts
iv. Transfers from mobile money accounts to bank accounts
v. Bank transfers on an instant pay digital platform or application originating from a bank account belonging to an individual subject to a threshold to be determined by the Minister
Transactions E-Levy will NOT cover
The Finance Ministry has also highlighted some scenarios where the E-Levy will not apply. They are;
i. Cumulative transfers of GHC100 per day made by the same person
ii. Transfers between accounts owned by the same person
iii. Transfers for the payment of taxes, fees and charges on the Ghana.gov platform
iv. Electronic clearing of cheques
v. Specified merchant payments (that is, payments to commercial establishments registered with the GRA for income tax and VAT purposes)
vi. Transfers between principal, master agent and agent’s accounts