1. What is E-Levy?
The E-levy is a tax imposed on electronic transfers changed at the time of transfer. The levy shall be administered by the GRA and collected through licensed Banks. Specialized Deposit-Taking Institutions, Payment Service Providers PSPs, and Electronic Money Issuers EMIs.
What is the rate of the levy?
The levy is 1.50% of the value of the electronic transfer.
Why has the Government decided to levy electronic transfers?
To expand the tax base.
To increase domestic tax mobilization due to Ghana’s low tax-per-GDP ratio compared to its peers and other developing nations.
To provide an opportunity for every Ghanaian to contribute towards nation building
To reduce dependency on debt and borrowing
What will the revenue generated by the E-Levy be used For?
The proceeds shall be used to tackle:
the seemingly intractable and hydra headed challenges of high youth unemployment;
inadequate and poor physical and digital infrastructure, including, in particular roads;
rising public debt; and the
diminishing entrepreneurship culture of Ghanaians.
How will the levy be applied?
The levy will be applied on the value of transfer above GHS100 on a daily basis. That is, after one hundred Ghana Cedis a day cumulative transfer, the e-levy will be applied. In other words, if the total amount sent in a day is not more then GHS 100, you will not pay E-levy.
For example, if Daniel sends GHS 50 to his sister in the morning and sends another GHS 50 to his brother in the afternoon, he will not pay the E-levy.
Who is responsible for charging the E-levy and how will it be charged?
The levy will charged whenever a person makes a transfer. The charging entity will add the levy to the transfer amount and charge bothe the person’s wallet or account. The entity will then pay the levy collected to Government.
The entities responsible for charging the
The mobile money operators MTN Momo, Vodacash, AirtelTigo Money, Zeepay and G-Money
Payment Service Providers such as E-Tranzact, GHANA. GOV, Korba, etc
Specialized Deposit taking institutions such as rural and community banks, savings and loan companies, finance houses etc.
The Minister also has the power to add to the list through Regulations
Who will be collecting the E-Levy?
Government, through the Ghana Revenue Authority will set up a platform to collect the E-levy in collaboration with licensed Electronic Money Issuers, licensed Payment Service Providers PSPs, licensed Banks, specialized deposit-taking institutions, and any other entity designated by the Minister
What transactions fall under the E-Levy?
Any transfer to or from a mobile money account or from a bank account of a person will be subject to the tax. These include:
Transfers done on the same mobile money network – For example sending money from your MTN Momo wallet to another person’s MTN Momo wallet.
Transfers from one mobile money network to a recipient on another network – For example, sending money from your MTN Momo wallet to another person’s TiGo Cash wallet.
Transfers from bank accounts to mobile money accounts: For example, Kofi transfers money from his CBG bank account to Ama’s MTN mobile money wallet.
Transfers from mobile money accounts to bank accounts: For exampld, Esi transfers money from her Vodafone Cash money wallet to Yaw’s GCB bank account.
Bank transfers on a digital platform or application which originate from a bank account belonging to an individual: For example, Kwame transferring money from his NIB Bank account to Akua’s Prudential Bank account.
What transactions are NOT covered by the E-levy
The following transfers are excluded from the levy:
Cumulative transfers of GHS100 per day made by the same person: Everyone has a daily tex-free threshold GHS100 -that is every person will be able to send up to GHs100 a day without the payment of the levy.
Transfer between accounts owned by the same person: If you are sending money to your own account then you will not be charged the E-levy.
Transfers for the payment of taxes, fees, and charges: Any payment of MDA or MMDA using the Ghana.gov platform or other designated method, do not attract the levy.
Electronic Clearing of Cheques: Clearing of cheques by the banks and specialized deposit taking institutions such as the savings and loans companies etc. are excluded.
Specialized merchant payments: Payments made to commercial establishments through a payment service.
Transfers between principal, agent, and master-agent accounts: To avoid charging the levy multiple times transfer that pass through multiple service providers before they get to the actual recipient do not attract the levy.
Are utility and airtime payments subject to the E-levy?
Yes, Once the payment is made from a mobile money account, bank account or through a merchant payment platform; and exceeds the GHS100 daily threshold the levy is payable.
Will the E-levy be charged on payments of wages and salaries using mobile money?
If the company is registered with GRA for income tax or VAT and salary payment is made from a corporate bank account, there will be on e-levy charge on the amount.
Will there be a threshold above which E-levy charges will not apply?
No, there is no threshold, the E-levy applies to all transfer amounts.
Will ATM withdrawals attract E-levy?
No, ATM withdrawals are excluded from the E-levy.
Will Mobile Money Qwikloan attract E-Levy?
Loan repayments will not attract the lecy if the recipient is registered with the GRA for Income tax of Vat. Otherwise, the sender will pay the E-levy.
Will there be a separate bank account to collect the E-levy?
By law, all revenue collected by the GRA, including the E-levy, shall be paid into the the Consolidated Fund.
We are encouraged to pay our taxes through ghana.gov. Will tax payment made through ghana.gov attract E-levy?
No, any payment of taxes, fees or charges made to an MDA or MMDA using the Ghana.gov platform or other designated system is excluded from E-levy.
When will the E-Levy come into effect?
The E-levy will come into effect after approved by Parliament.
If I encounter some trouble, who can I call?
A 24-hour service centre will be set up to help individuals who may need further clarification or who might be experiencing any challenges. The call lines will be announced shortly.
This message is approved byThe Minister of Finance.