Transactions E-Levy would and would not affect

On 17 November 2021, Ken Ofori-Atta said the Government of Ghana decided to tax all electronic transactions in the informal sector to cover the tax net. He made this known in the 2022 budget statement and economic policy that was read in the parliament of Ghana. 1.75% is the rate of the E-levy which the Government decided to apply to all transactions. Ken Ofori-Atta said it could raise about $1.15billion which will widen the tax net. According toΒ John Kumah, the money generated from the levy would be used for the payments of contractors in Ghana. Also, revenue from the levy would be used to support entrepreneurship, cyber and digital security; road infrastructure, and provide jobs to about 11million people in the country. Β The Government of Ghana said that the introduction of the levy was due to the rise of the use of digital platforms for transactions because of theΒ COVID-19 pandemic.

During the consideration of the controversial Electronic Transfer Levy (E-levy) at the second reading stage on Tuesday, March 29, 2022, The Minority staged a walkout in Parliament.

The second reading of the levy saw the bill being adopted at the reduced rate of 1.5% from the initial proposed rate of 1.75%.

The Speaker of Parliament, Alban Bagbin, said he was surprised by the Minority walkout but indicated that it would not affect the course of proceedings.

The levy, which was amended from 1.75 percent to 1.5 percent today, Tuesday, March 29, 2022, will be a tax on electronic transactions, which includes mobile-money payments.

Below are the transactions E-levy would cover;

TRANSACTIONS E-LEVY WOULD COVER

πŸ”† Mobile money transfers between accounts on the same electronic money issuer (EMI).

πŸ”† Mobile money transfers from an account on one EMI to a recipient on another EMI.

πŸ”† Transfers from bank accounts to mobile money accounts.

πŸ”† Transfer from mobile money accounts to bank accounts.

πŸ”† Bank transfers on a digital platform or application which originate from a bank account belonging to an individual to another individual.

TRANSACTIONS E-LEVY WOULD NOT AFFECT

πŸ”† Cumulative transfers of GHC100 per day made by the same person.

πŸ”† Transfers between accounts owned by the same person.

πŸ”† Transfers for the payment of taxes, fees and charges on the ghana.gov platform.

πŸ”† Electronic clearing of cheques.

πŸ”† Specified merchant payments (that is, payments to commercial establishments registered with the GRA for income tax and VAT purposes).

πŸ”† Transfers between principal, master agent and agent’s accounts.

LEAVE A REPLY

Please enter your comment!
Please enter your name here