The Minister for the Interior, Ambrose Dery, says introducing the 1.75% Electronic Levy (E-Levy) is necessary to invest in Ghana’s security.
According to him, the government was currently making an investment to secure the borders of the country due to the security situation within the sub-region.
“The whole sub-region is in turmoil but we are investing money to make sure we’re safe. No country outside will invest money in our safety. No one will do that. What do we do? We have to pay taxes and I have already told you. How much is it all? It is not much,” he justified.
Insisting that the levy was necessary despite the rejection it has faced since it was mentioned in the 2021 budget statement in parliament, the Member of Parliament for the Nandom Constituency maintained that the Upper West Region has become safer now compared to times past due to the investment the government made in the area of security.
“Today, Wa and the Upper West is safer because of the investment of the government insecurity. The President visited Wa Naa and he (Wa Naa) acknowledged it and gave smocks to the Defence Minister and me. We are safer now.” he said at a town hall meeting at Wa in the Upper West region.
What is the E-levy?
The E-levy is a tax applied on transactions made on electronic or digital platforms. The Minister for Finance, Ken Ofori Atta, announced in parliament the intention to implement the bill where 1.75% will be taxed on all digital transactions.
The E-Levy is expected to generate an estimated amount of GH¢ 6,96 billion in 2022, GH¢7.89 billion in 2023, GH¢8.92 billion in 2024 and GH¢10.09 billion in 2025.
It is also one of the measures to increase the country’s tax to Gross Domestic Product (GDP) ratio from 13 per cent to 16 per cent.
According to Mr Ofori-Atta, the E-Levy will not be applicable for the following:
- Cumulative transfers of GHC100 per day made by the same person.
- Transfers between accounts owned by the same person.
- Transfers for the payment of taxes, fees and charges on the Ghana.gov platform
- Electronic clearing of cheques.
- Specified merchant payments (that is, payments to commercial establishments registered with the GRA for income tax and VAT purposes).
- Transfers between principal, master agent and agent’s accounts.
On the other hand, the E-Levy will be charged fully on the following:
- Mobile money transfers between accounts on the same electronic money issuer (EMI).
- Mobile money transfers from an account on one EMI to a recipient on another EMI.
- Transfers from bank accounts to mobile money accounts.
- Transfer from mobile money accounts to bank accounts.
- Bank transfers on a digital platform or application which originate from a bank account belonging to an individual to another individual.