Townflex Business News – As most of you are already aware, The E-Levy bill has been passed by Ghana’s Parliament after months of disagreement between the two sides in the Parliament house (NPP & NDC) and will become effective from May 2022.
The controversial Electronic Transaction Levy (E-Levy) was passed on Tuesday Afternoon, March 29th, 2022, even without the presence of the minority in Parliament.
And in this very post, Townflex will be pointing out to you all, the areas or transactions which will attract the taxation of E-Levy, and also transactions that the E-Levy will not be applied to.
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E-Levy MOMO Charges: One thing you should know is that the 1.5% electronic transaction will not be affecting those withdrawing money from your respective mobile money wallets, as well as depositing funds into one’s Momo Wallet, in the below paragraphs you will see the list of transactions that will be affected and the ones that will not be affected.
What transfers are not covered by the E-Levy
Below are the list of transactions that will be affected and one the ones that will not be affected by the new E-Levy.
Transactions E-Levy will Affect
- 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
Transactions E-Levy will NOT cover
- MOMO Withdrawals
- 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
The Charging Entities are:
- Electronic Money Issuers
- Payment Service Providers
- Banks
- Specialised Deposit Taking Institutions
- Other Financial Institutions prescribed by Regulations made under the Act.
The implementation of the Levy commences on 1st May 2022
