Electronic Transfer Levy deductions take effect from May 1, 2022 – GRA

Filed photo of people transacting Mobile Money (MoMo) business
Filed photo of people transacting Mobile Money (MoMo) business

The Ghana Revenue Authority (GRA) has announced the effective date for payments/deductions of the Electronic Transfer Levy (E-levy).

In a public notice, the Commissioner-General of the Ghana Revenue Authority (GRA) through the Domestic Tax Revenue Division said, the Electronic Transfer Levy Act 2022 (Act 1075), implementation of the Levy commences on 1st May, 2022.

Following the passing of the Electronic Levy, President Nana Addo has assented it into law.

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Electronic Transfer Levy Act, 2022 assented and gazetted – Download

According to the Electronic Transfers Transfer Levy Act, 2022 (1075), 1.5% of the levy is imposed on all electronic transfers.

The details of the types of transfers are as follows.

1. An electronic Levy would  be imposed on transfers done between Mobile Money accounts on the same electronic money issuer.

2. Mobile Money transfers from an account on one electronic money issuer to a recipient on another EMI.

3. Again, transfers from any bank accounts to Mobile Money accounts will also attract the electronic Levy accordingly.

How to send MoMo without paying E-levy charges

4. Furthermore, the vice versa will also be attract an imposed levy of 1.5%. It means, transfers from Mobile Money accounts to bank accounts will also attract the same levy.

5. Finally, bank transfers on an instant pay digital platform or application originating from a bank account belonging to an individual subject to a daily threshold to be determined by the Minister of Finance.

Parliament passes E-levy Bill

In the notice, Ghana Revenue Authority listed all the entities charging the levy.

The entities are as follows:

Electronic Money Issuers

Payment Service Providers

Banks

Special Deposit Taking Institutions, and

Other Financial Institutions prescribed by Regulations made under the Act.

SOURCE: Coverghana.com.gh

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