The Flagbearer of the New Patriotic Party (NPP), Dr Mahamudu Bawumia, has promised to abolish the tax on electronic financial transactions, popularly known as E-levy, if elected President.
Addressing the nation at the University of Professional Studies (UPSA) in Accra today [Wednesday, February 7], the Vice President indicated that removing the levy will aid the government’s cashless economy agenda.
“To move towards a cashless economy, however, we have to encourage the population to use electronic payment channels. To accomplish this, there will be no taxes on digital payments under my administration. The E-levy will, therefore, be abolished,” he announced.
The E-levy, which started on Sunday, May 1 2022, sees a 1.5% levy on electronic transactions. It covers mobile money payments, bank transfers, merchant payments, and inward remittances. There is an exemption for transactions up to GH¢100 per day.
This move was part of the government’s efforts to broaden the country’s tax base and increase revenue mobilization.
Initially, the levy was set at 1.50% on all electronic transfers, but following criticism from the Minority in Parliament and the general public, the government revised the rate to 1 per cent.
Despite the adjustment, Vice President Bawumia has made it clear that he is committed to abolishing the E-levy altogether if he assumes the presidency.