E- levy came into effect on May 1st as enacted by parliament. The electronic transaction levy is commonly known by Ghanaians as E-levy.
E-levy is a tax applied on transactions made on electronic or digital platforms. In legal terms, a levy is a seizure of your property to satisfy a tax debt. The government of Ghana has passed the electronic transfer levy Act, which imposes a levy of 1.50% on electronic transfers.
The government took this initiative to broaden the tax base in the country and generate revenue. The cabinet decided on this due to the rise of the use of digital platforms for transactions because of the Covid-19 pandemic.
Also, this decision was taken in replace of tolls collected at the vantage toll booth points. on this article, we talk about the things you need to know about the new implemented Electronic Transaction levy(E-levy)
Things You need to know about the Electronic Transaction Levy(E-levy).
Here are some things you need to know about the e-levy.
- Withdrawal from mobile money wallet: Withdrawal from own mobile money wallet is not subjected to E-levy, thus one will not be charged with E-levy from withdrawing from his or her own mobile money(momo) account, However, he or she will face the telecommunication charges.
- Deposit; Deposit or cash-in into an individual’s own wallet is not subjected to E-levy.
- Transferring from one mobile money account to another, E-levy is charged whenever you make a transfer from one account to another.
- Withdrawals: withdrawing from your own mobile money(momo) account is not subjected to E-levy and therefore will not be taxed, But will, however, face telecommunication charges.
According to GRA, only the sender will be taxed the E-levy and not the receiver.
- Application of the E-levy: The E-levy is applicable to the money worth Ghc100 and above on daily basis per head, thus, a free transaction made below Ghc100 in a day, any transaction above the said amount will be taxed within the day.
- ATM withdrawals: Atm withdrawals are just like withdrawing from your own momo wallet, there is no E-levy tax on withdrawing from ATM.
- Transferring from bank to mobile money wallet; One will not be taxed E-levy for transferring from bank to his or her own momo wallet, However one will be taxed if he or she transfers from bank account to another momo wallet.
This information is what you need in order to avoid mistakes that will be detrimental. When it comes to electronic transactions, a little mistake can cause you much. Keeping yourself informed is very important.
Stay safe and be vigilant when making transactions