Momo transactions to be affected by e-levy Payment of fees and taxes would not be taxed, Ofori-Atta
Transfer between accounts owned by the same person exempted from e-levy, Ofori-Atta
E-levy to be sent to parliament again, Finance minister
As part of efforts to widen the tax bracket and raise more revenue, government, in its 2022 budget statement, announced the introduction of the Electronic Transactions Levy also known as the E-Levy.
The finance minister, during the 2022 budget presentation in November 2021, said the e-levy would be a 1.75 percent charge on cumulative electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances that exceeds GH¢100 in a day.
He further stated that the 1.75 percent charge would be borne by senders except for monies received from abroad.
However, the announcement of the levy created a divide among the citizenry as well as members of parliament.
A bill to pass the E-levy into a tax was then sent to parliament following the impasse but the minority caucus of the House rejected it.
At a press briefing in Accra on January 19, 2021, Ken Ofori-Atta indicated that he would once again send the bill to parliament for approval. GhanaWeb looks at the five items the minister indicated the E-levy would now cover.
The first item the minister mentioned was: “mobile money transfers between accounts on the same electronic money issuer (EMI)."
In other words, if a person accumulatively sends money above GH¢100 through any of the Bank of Ghana proved EMI, let us ay Zeepay Ghana Limited to another person on Zeepay the sender would pay the 1.75 percent tax.The second item that the e-levy covers according to Ofori-Atta are: “mobile money transfers from an account on one EMI to a recipient on another EMI."So, in a day, should a person using Zeepay accumulatively send funds (in excess of GH¢100) to person(s) on Vodaphone cash and/or MTN mobile money, the sender would have to pay the e-levy.The third bracket includes “transfers from bank accounts to mobile money accounts.” Sending money from a Zenit Bank account (cumulatively in excess of GH¢100) to MTN mobile money account(s) would attract a 1.75 percent deduction.Ofori-Atta also stated that “transfers from mobile money accounts to bank accounts” in excess of GH¢ 100 would also be taxed 1.75 percent. In order words, sending over GH¢100 from your AirtelTigo mobile money to your GCB bank account would be taxed.The finance […]