The e-levy tax charges in Ghana has become one of the most discussed issue in the nation, after the parliament of Ghana approved the E-Levy — to impose charges on Mobile Money and other electronic charges in Ghana.
This article guide shall serve as a complete guide, with the latest information you should know about E-Levy Ghana Charges 2022.
Table of Contents
What Is E-Levy In Ghana?
Electronic Transaction Levy (commonly known as Electronic Levy or E-levy) is a tax applied on transactions made on electronic or digital platforms.
E-Levy Ghana Parliament
On 17 November 2021, Ken Ofori-Atta said the Government of Ghana decided to tax all electronic transactions in the informal sector to cover the tax net. He made this known in the 2022 budget statement and economic policy that was read in the parliament of Ghana. 1.75% is the rate of the E-levy which the Government decided to apply on all transactions. Ken Ofori-Atta said it could raise about $1.15billion which will widen the tax net. According to John Kumah, the money generated from the levy would be used for the payments of contractors in Ghana. Also, revenue from the levy would be used to support entrepreneurship, cyber and digital security; road infrastructure and provide jobs to about 11million people in the country. The Government of Ghana said that the introduction of the levy was due to the rise of the use of digital platforms for transactions because of the COVID-19 pandemic.
E-Levy Bill Ghana
The E-levy bill in Ghana is proposed to cover the following transactions;
It was proposed the E-levy would cover the following transactions:
- All inward remittances (which would be paid by the recipient)
- All person-to-person (P2P) mobile transactions (which includes sending of funds to another account, payment for goods and services, payment of utilities
- All POS/Merchant payments.
E-Levy Tax in Ghana
If you are looking for the E-Levy tax in Ghana, 1.75% is the rate of the E-levy which the Government decided to apply on all transactions.
E-Levy Charges On Mobile Money
The E-levy charges incurred on mobile money transactions in Ghana for 2022 is recommended that everyone will get note of it.
| MoMo Value | Telco Charges (0.75%) | E-Levy Charges (1.5 %) | Total Charges |
|---|---|---|---|
| GHȻ 100 | GHp 0.75p | GHȻ 0.00 | GHp 0.75 |
| GHȻ 150 | GHȻ 1.125 | GHȻ 2.25 | GHȻ 3.38 |
| GHȻ 300 | GHȻ 2.25 | GHȻ 4.50 | GHȻ 6.75 |
| GHȻ 500 | GHȻ 3.75 | GHȻ 7.50 | GHȻ 11.25 |
| GHȻ 1000 | GHȻ 7.50 | GHȻ 15.00 | GHȻ 22.50 |
| GH 2000 | GHȻ 15.00 | GHȻ 30.00 | GHȻ 45.50 |
| GHȻ 5000 | GHȻ 37.00 | GHȻ 75.00 | GHȻ 112.50 |
How Much Is The E-Levy In Ghana?
According to the proposed functions of the E-Levy charges, the Minister Of Finance, Mr. Ken Ofori Atta discussed that the E-Levy charges could raise about $1.15 billion that will widen the tax net.
Difference Between Levy And Tax
A tax rate is the percentage used to determine how much a property taxpayer will pay. A levy represents the total amount of funds a local unit of government may collect on a tax rate. In other words, the levy is a cap on the amount of property tax dollars a local government is allowed by law.
List Of Transactions E-Levy Charges Cover
These are all the list of transactions that the e-levy charges will cover in Ghana for the year 2022.
- Transfers of mobile money between accounts with the same electronic money issuer (EMI)
- Mobile money transfers from one EMI account to a recipient on a different EMI
- Transfers between bank and mobile money accounts
- Transfers between mobile money and bank accounts
- Bank transfers from one person’s bank account to another person’s bank account using a digital platform or application.
List Of Transactions E-Levy Charges Will Not Cover
These are some of the transactions the E-Levy charges will not cover in Ghana for 2022.
- Transfers of GHC100 done by the same person on a daily basis.
- Transfers from one person’s account to another
- Transfers to the Ghana.gov portal for the payment of taxes, fees, and charges
- Cheques are cleared electronically.
- Payments to specific merchants (that is, payments to commercial establishments registered with the GRA for income tax and VAT purposes)
- Transfers between the accounts of the principal, master agent, and agent
In summary, the E-levy has been passed by parliament and will take effect from 1st May, 2022. Despite the passage of e-levy, the minority in Ghana’s parliament are set to challenge it, at the supreme court. According to them the passage of e-levy is illegal because parliament lacked the required numbers to do so.
MTN and AirtelTigo decided to reduce about 25% on their person-to-person mobile money transfer charges should the levy be passed.