E-Levy has been reduced to 1.5% – Ofori-Atta

The government has decided to reduce the rate for the Electronic Transaction Levy (E-Levy) from 1.75% to 1.5% of the value of the transaction, Ken Ofori-Atta, the Minister for Finance, has announced.

He said the government had decided to effect a reduction in the charge in response to various stakeholder engagements it has undertaken.

Moving for the E-Levy Bill to be read for the second time in Parliament today (Tuesday 29 March 2022), Ofori-Atta said that “the government has also decided to reduce the rate of the levy from 1.75% of the transfer to 1.5% of the transfer”.

He said the object of the E-Levy Bill is to widen the national tax net and impose a levy on electronic transfers to enhance the government’s drive for revenue mobilisation.

The E-Levy is expected to raise roughly GHC6.93 billion in revenue in 2022 alone.

Ofori-Atta said described it as “a key mechanism that the government will use to ensure that more Ghanaians and the public contribute their first share towards the development of the country”.

Entrepreneurship culture
The Finance Minister added that the proceeds from the E-Levy will be used to “address the seemingly intractable and hydra-head of challenges of high youth unemployment, inadequate and poor fiscal and digital infrastructure, including roads, rising public debt and a diminishing entrepreneurship culture while maintaining and sustaining the flagship programmes”.

He said digital transactions have experienced a steady rise over the years but have remained largely untaxed. Ofori-Atta said the levy has been designed to widen the tax net, help increase the per capita ratio of tax contribution and generate much-needed funds for Ghana.

“It will be charged any time a person transacts mobile money or bank account, just as in the case of mobile money transaction fees. The levy will be paid by the sender of the money,” he said.

Source: Asaaseradio