Parliament of Ghana Officially Passes E-Levy Bill

After months of back and forth between the minority and majority in parliament, the parliament of Ghana has officially passed the controversial ‘E-levy’ bill which is to be signed by the president into law.

The e-levy bill is a 1.5% tax imposed on digital transactions in the country. The bill since its mention has been a topic of national discussion and was met with public disapproval from both the minority in parliament and the general population. 

The tax which covers but is not restricted to money payments, bank transfers, merchant payments, and inward remittances is expected to generate $926 million in 2022.

Once the e-levy has been signed into law, the following transaction will be taxed:

  1. Mobile Money Transfers between accounts on the same Electronic Money Issuer (EMI)
  2. Mobile Money transfers from an account on one EMI to a recipient on another EMI
  3. Transfers from bank accounts to mobile money accounts
  4. Transfer from mobile money accounts to bank accounts;
  5. Bank transfers on a digital platform or application originate from a bank account belonging to an individual, to another individual.
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There are some concessions on the E-Levy and some areas the tax will not affect: These include:

  1. Cumulative transfers of GHS 100 per day made by the same person;
  2. Transfers between accounts owned by the same person;
  3. Transfers for the payment of taxes, fees, and charges on the platform;
  4. Electronic Clearing of Cheques;
  5. Specified merchant payments (i.e. payments to commercial establishments registered with GRA for Income Tax and VAT purposes); and
  6. Transfers between principal, master-agent, and agent’s accounts.
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