E-levy will increase Ghana’s tax-to-GDP ratio

Mr Isaac Kwabena Amoako, a member of the Technical Committee, says the collection of the E-levy will increase the country's tax-to- ratio from 12.5 per cent in 2021 to 20 per cent by 2024.

He said out of the country's population of over 30 million, only 2 million people paid direct taxes of which 12 million were active workers.

The e-levy, he said, was among interventions to bring on board informal sectors and other organisations or institutions on the country's tax net.

Mr Amoako said this at a sensitization programme for some identifiable groups  on the implementation of the Electronic Transfer Levy Act,2022 (Act 1075), organized by the (GRA).

The Act imposes a levy on all applicable electronic transfers made other than electronic transfers that are excluded under the Act.

The government's decision to introduce the levy, he stated, was to enhance domestic tax mobilisation and expand the tax base and provide an opportunity for the citizenry to contribute to national development. 

Mr Amoako, who is also the Head of the Project Management Team of GRA, said the levy did not apply to persons who withdraw money from their wallet.

He explained that transfers that were not covered by

e-levy includes the cumulative transfer of GHS 100 per day made by the same person using mobile money and transfer between accounts owned by the same person.

“For example, a transfer from Naa's AirtelTigo wallet to her MTN wallet or from her account to her Prudential bank account or from her CalBank savings account to her current or investment account will not attract the Levy because Naa has a linked all accounts with her ,” he said.

Other transfers that do not attract e-levy charges are transfers for the payment of taxes, fees, and charges, electronic clearing of cheques, Specified Merchant Payments, and transfers among principal, agent, and master-agent accounts.

He explained that, in the Act, transfers that fall under the E-Levy were mobile money transfers done between wallets on the same electronic money issuer, sending money from one Vodafone Cash

wallet to another person's AirtelTigo wallet, transfers from bank accounts to mobile money wallets, transfers from mobile money wallets to bank accounts and bank transfers on an instant pay digital platform or application which originates from a bank account belonging to an individual.

“For example, Kwame transferring money from his ADB account using the ADB App to Akua's National Investment Bank account,” he said.

He said the levy was charged by mobile money providers like MTN Momo, Vodafone Cash, AirtelTigo Money, Zeepay, GCB G-Money, and Yup Ghana and

Payment Service Providers like e-Tranzact, JuniPay, Korba,Nsano, banks like Consolidated Bank Ghana, GCB Bank, ADB and Specialised Deposit-Taking Institutions such as Rural and Community Banks, Savings and Loans Companies, Finance Houses and other prescribed by Regulations.

Responding to concerns from the participants on wrong deductions, Mr Amoako said any undue deductions should be reported to the appropriate sector for refund.

He said from July 1, 2022, taxpayers can only use Ghana Card for refund of any wrong deductions.

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