E-Levy to impose 1.50% charge on electronic transfers
The Ghana Revenue Authority has stated the designated charging entities for the implementation of the Electronic Transfer Levy.
According to the Authority, the charging entities who will collect the levy from the public include, Electronic Money Issuers (EMI); Payment Service Providers (PSP); Banks and Special Deposit-Taking Institutions (SDI) and other Financial Institutions prescribed by Regulation made under the Act.
This was contained in a guidelines documentation issued by the revenue arm of government at a media engagement in Accra.
With the implementation of the levy set to take effect from May 1, 2022, persons who patronise electronic transactions will be charged 1.50 percent on all electronic transfers covering mobile money payments, bank transfers among others.
Despite stiff opposition against the levy since its announcement in November last year, passage of the Bill has courted controversy in Parliament and widespread backlash from various stakeholders and a cross-section of the Ghanaian public.
Minority Leader Haruna Iddrisu, Okudzeto Ablakwa and Mahama Ayariga have subsequently filed an application before the Supreme Court challenging the process that led to the passage of the E-Levy on March 29.
In the yet-to-be-heard case, the three lawmakers argue that Parliament did not have a quorum to pass the law especially after the Minority staged a walkout after the second reading of the Bill and before the House voted on the matter.
They also believe the levy is rather regressive and will erode gains made towards a cashless economy. But government, on the other hand, insists the levy is necessary to fill revenue gaps, broaden the tax base and help increase Ghana’s tax-to-GDP ratio from approximately 12.5% in 2021 to 20% by 2024.
Meanwhile, Commissioner-General of the GRA, Reverend Dr. Ammishaddai Owusu-Amoah earlier admitted releasing of the guidelines had to delay for some time to allow for stakeholder engagements over the levy.
He has also insisted on the Authority’s readiness to put in place measures to roll out the implementation of the Electronic Transfer Levy from May 1, 2022.
He added that all the technologies needed to ensure the successful implementation of the E-Levy have been acquired.
The E-Levy Bill was in March this year assented into law by the President after its approval by a Majority-backed Parliament.
See the guidelines document issued by the GRA below:
The implementation of the E-Levy will commence from May 1, 2022