Government of Ghana would be introducing a new levy on all Electronic transactions in the country from 2022.
The levy, according to the Minister of Finance, Ken Ofori Atta is mainly aimed at widening the tax net and roping in the informal sector.
Known as the Electronic Transaction Levy or E-Levy, the sector minister indicated that it would cover mobile money payments, bank transfers, merchant payments and inward remittances at an applicable rate of 1.75%, and shall be borne by the sender except inward remittances, which will be borne by the recipient.
“Mr. Speaker, to safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day (which is approximately GH¢3000 per month) will be exempt from this levy.
“A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others. 3y3 Baako, Ye nyinaa bey tua,” he explained further.
According to him, the new policy also comes into effect (once appropriation is passed) from 1st January, 2022.
He added that government will work with all industry partners to ensure that their systems and payment platforms are configured to implement the policy.
Mr. Ofori Atta who was delivering the 2022 Budget Statement and Economic Policy to Ghana’s Parliament also noted that the E-Levy would be compensation to government for the scrapping of the road toll Levy.