The Electronic Tax or E-levy of 1.75% covers almost every online transaction including mobile money transfers, purchasing food and other items, and inward remittances.
These are some of the businesses that may be affected directly or indirectly by the e-levy
Mobile money platforms:
The mobile money platform has become one of the easiest, fastest ways of circulating money for businesses or as a token to loved ones. The introduction of this initiative is relatively cheaper compared to the stress of going to the bank and joining long queues. With Momo, any individual can transfer money within the comfort of his home or shop. However, the introduction of the 1.75% levy as announced by the Finance Minister is likely to take a toll on both operators and users as charges will increase once it's implemented.
Online stores:
After the outbreak of COVID-19, transacting business online has become very rampant and the first choice for most people. For some, it is convenient and easy to use as they may not have to go to physical shops to buy their items. Now, with the introduction of the e-levy, customers who depend heavily on online shops will have to pay more for purchases they make.
Courier services:
Courier services will not be left out as they have become the go-to model for the picking-up or delivery of items bought online. For safety and efficiency, most riders transact via mobile money. A tax imposition on mobile money directly affects the activities of these riders which may cause an upward adjustment in their prices thus affecting patrons of their services.
Ride-hailing services:
Ride-hailing services have seen a substantial increase in patrons in recent times. Due to the numerous challenges, ranging from long queues to inconvenience with public transport systems, ride-hailing has become the answer to easy and fast commuting for most Ghanaians. These services are mainly done online thus will not be left out of the imposition of the 1.75% levy.
Food Apps:
Just like buying clothes, jewelry, shoes, accessories, etc online, most restaurants have adopted online platforms to interact with customers and help them make purchases. Most payments for these services are done through mobile money and other online payment platforms. These apps will not be left out of the electronic tax that will be rolled out in January 2022.
Online banking:
Banks have created apps and online platforms to reduce in-person interactions with customers. Customers can perform almost all banking transactions with just a click of a button in their offices or the comfort of their homes. These services are also relatively cheaper and convenient to operate, but the story may be quite different when the new e-levy is imposed.
This list is not exhaustive as the levy appears to largely affect almost all online transactions.
The government intends to widen the tax net and rope in the informal sector to generate revenue as online transactions have seen appreciable growth over the past few years.
