As the GHC 100 per day threshold has been removed, any amount of money transferred electronically from one account to another will be subject to the now-reduced 1% Electronic Transactions Levy (E-Levy).
Finance Minister Ken Ofori-Atta has announced that the government will reduce the controversial and burdensome Electronic Transactions Levy (E-Levy) from 1.5% to 1% and remove the GHC 100 transaction threshold.
He revealed this on the floor of parliament while delivering the budget for 2023.
According to him, the move is one of several initiatives that the government intends to implement in order to turn the economy around and alleviate the severe economic hardship that Ghanaians are currently experiencing.
“As a first step, however, the headline rate will be reduced to one percent of the transaction value,” Ofori-Atta explained.
The tax, which many analysts have described as regressive, was expected to raise at least GH6.9 billion, but the figure had to be revised to around GH4.9 billion due to the delay in the passage of the e-levy bill. After failing to meet the GH1.46 billion target for the first half of the year, the government was forced to reduce the tax measure to GH611 million.
Meanwhile, the Ghana Revenue Authority (GRA) has revealed that the e-levy has so far yielded three hundred and twenty-eight million cedis (GH328m).
According to Dr. Ammishaddai Owusu-Amoah, Commissioner-General of the GRA, this is the total amount collected since the tax went into effect in May.
“We are seeing an increase in revenue collected and are confident that this will continue.” The collection of the E-levy is improving by 10-15% month on month, according to the Commissioner-General, Rev. Dr Amishaddai Owusu-Amoah.
The e-levy was introduced and passed into law earlier this year, despite widespread opposition. It levies a 1.5% tax on all electronic money transfers, including mobile money and bank transfers between accounts belonging to different holders.
Finance Minister Ken Ofori-Atta has said the government will reduce the E-Levy from the current 1.5% to 1%#AsaaseNews pic.twitter.com/PumFXNBHJ2
— Asaase 99.5 (@asaaseradio995) November 24, 2022
Also read: Notify your telecos about wrongful E-Levy charges – GRA
Because the GHC 100 per day threshold has been removed, any amount of money transferred electronically from one account to another will be subject to the now-reduced 1% Electronic Transactions Levy (E-Levy).
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