Do you know that the E-Levy starts today, May 1, 2022? Do you know the rate has been reduced from 1.75% to 1.5% before the implementation?
Today marks the historic start date for the implementation of the Electronic Transaction Levy, a.k.a. E-levy and all affected transactions will be charged an additional 1.5%. The 1.5% rate is progressive, thus, the more money you send across the affected platforms, the more the amount you pay in CEDI terms.
On 29th March 2022, parliament passed the E-levy, the same day the Minority walked out from parliament. The Ghana Revenue Authority has disclosed that it is ready to ensure the smooth implementation of the new levy and that it has put in place the needed measures to ensure the levies are collected as required by law.
“The Authority assures the general public that adequate measures have been put in place to ensure the smooth implementation of the Levy,” it said in a statement.
The 1.5% E-Levy starts today however, the “GRA has held several technical sessions and engagements with the various charging entities (Electronic Money Issuers, Banks, Payment Service Providers, and Specialised Deposit-taking Institutions) on the implementation of the E-Levy, with the aim of ensuring that the charging entities are in a position to implement the Levy by the due date,” it added.
“Following Ghana Revenue Authority’s assessment of the general readiness of some Charging Entities to integrate with the E-levy Management System, the Commissioner-General has decided on a modified phased approach for the implementation of the Levy from 1st of May 2022.”
All banks operating in Ghana have been bombarding their customers with messages alerting them of the start of the collection of the E-levy on 1st May. The transmission of the test messages started on Wednesday 27th April and continued until late in the evening on 30th April 2022. They have also been doing the same throughout the last week of the month of April.
One of such messages from Vodafone read…
“Dear Valued Customer, from the 1st of May 2022, the 1.5% E-Levy will apply to electronic transfers. However, there are no further transfer charges as Vodafone Cash is still free!”
That of MNT was not so different as it stated as follows “ “Dear Valued Customer, kindly be informed that the e-levy of 1.5 % on electronic money transfer from 1st May, 2022. The levy will be applied on transfers above GHS100 daily and will be in addition to the application charges,” MTN also stated in a message to its customers.
However, the Minority MPs have files a lawsuit against the passage of the E-levy at the Supreme Court and are challenging what they call an illegality. They further filed an injunction at the Supreme Court pending the hearing of their substantive case to stop the implementation from taking place on May 1.
1.5% E-Levy starts today: All you need to know about E-Levy
To know all the latest changes and the transactions that will not be affected by the E-levy, check this post
E-Levy takes off Sunday – GRA, banks, telcos ready for implementation and Banks Give Final Update Ahead of E-levy Implementation
The above will help you find answers to the following.
FAQs about E-Levy
What is the E-levy?
What is the rate of the levy?
Why has the government decided to levy electronic transfers?
What will the revenue generated by the E-Levy be used for?
How will the levy be applied?