The implementation of the revised Electronic Transfer levy (E-Levy) rate of 1% starts today, Wednesday, January 11.
The service providers are Airtel Mobile Commerce (Ghana) Limited, GCB G-Money, Mobile Money Limited, Vodafone Mobile Financial Services Limited and Zeepay Ghana Limited.
The Ghana Chamber of Telecommunications has announced its preparedness to implement the new rate.
In a press release issued on January 10, the Chamber said its members are working assiduously with the Ghana Revenue Authority (GRA) and other institutions, to ensure a seamless implementation of the revised E-Levy rate.
“The Chamber would like to assure the general public that its members are working assiduously with the GRA and other key institutions, to ensure a seamless implementation of the revised levy from Wednesday, January 11, 2023”.
This follows a directive from the Commissioner General of the Ghana Revenue Authority (GRA), on the implementation of the revised rate.
“As captured in the Electronic Transfer Levy (Amendment) Act, 2022, Act 1089 which has been passed by parliament and assented to by the President, the levy on electronic transfers has been reduced from 1.5% to 1%, while the GHS 100 threshold remains unchanged”, it said.
The E-Levy was introduced in the 2022 budget as additional revenue mobilisation handle to support government’s quest to undertake some critical projects and improve the quality of service for the telecommunication industry.
However, government revised the rate from the initial 1.5 percent electronic transaction levy downwards to 1 percent effective January 2023.
The E-Levy was introduced in the 2022 budget as additional revenue mobilisation handle to support government’s quest to undertake some critical projects and improve the quality of service for the telecommunication industry.
Parliament approved an amendment to the Electronic Transaction Levy (E-levy) from 1.5% to 1% on Wednesday, December 21, 2022.
Subsequently, the government sought to make the levy applicable to any amount transferred electronically.
The Minority in Parliament has continuously declared their stance to object to the removal of the GH₵100 threshold.
However, the bill submitted to the House on Wednesday, December 21, for approval excluded the section that sought to remove the GH₵100 threshold.
During the presentation of the 2023 Budget, the government announced a reduction of the E-levy rate from 1.5% to 1% and wanted to remove the daily non-taxable threshold of GH₵100.
Ranking Member of the Finance Committee, Dr Cassiel Ato Forson, while seconding the motion for the amendment bill to be approved, commended the government for denouncing its earlier intention to remove the threshold.
“We in the Minority had indicated strongly that we do not believe that the GH₵100 threshold must be removed because of several reasons.
“They have listened, and in presenting the E-levy bill clearly, they have decided to remove what they had intended to exclude. Mr Speaker, it is important for us to commend them for, at a minimum, they have listened,” he said on the Floor of Parliament.
It would be recalled that the government earlier this year announced the implementation of the E-levy at a rate of 1.5% for all electronic transactions exceeding GH₵100.
The 1.5% rate was a downward revision from the initially proposed 1.75%.
Despite the many agitations and rejections of the levy, the government said it was a significant revenue generation tax needed to shore up revenue for the economy.
Several months after the levy was implemented, the government said it could not generate the expected revenue.