Mobile money has improved the efficiency of money transactions
Government has announced a 1.75% levy to be placed on electronic transactions, Minister for Finance and Economic Planning has announced.
According to Ken Ofori-Atta, the levy will be known as the “Electronic Transaction Levy or E-Levy” and forms part of efforts to widen the country’s tax net and rope in the informal sector.
Delivering the 2022 budget statement before Parliament on Wednesday, the minister said “After considerable deliberations, Government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the “Electronic Transaction Levy or E-Levy.”
“Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except inward remittances, which will be borne by the recipient,” he explained.
He however added that to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day (which is approximately GH¢3,000 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. Mr. Speaker, this new policy also comes into effect (once appropriation is passed) from 1st January, 2022. Government will work with all industry partners to ensure that their systems and payment platforms are configured to implement the policy,” the minister told the House.
The presentation, is in accordance with Article 179 of the 1992 Constitution and section 21 of the Public Financial Management Act, 2016 (Act 921).