About GHC 54,000,000 realized in 1st month of E-levy – BoG
“As far as the E-levy is concerned, what we are beginning to see in the numbers since May, I think roughly we are seeing something like 54 million Ghana cedis is what has come in for the first month."
Director of Research and member of the Monetary Policy Committee at the Bank of Ghana, Philip Abradu-Otoo has revealed that the Government of Ghana realized about Ghc 54 million from the Electronic Transfer levy in the first month of its collection(May).
According to him, the BOG is still observing in the coming months to see whether the trend is a one-point trend or will increase thus calling for changes in consumer behavior regarding the acceptability of the E-levy.
“As far as the E-levy is concerned, what we are beginning to see in the numbers since May, I think roughly we are seeing something like 54 million Ghana cedis is what has come in for the first month. That is the first month's data that we have.
We need to look at the data more closely. I understand it was not started early and there are some structures that are still being put in place so we are observing the coming months to establish whether the trend is one data point trend that we have seen or whether it will increase.
A lot will also depend on the changes in consumer behavior regarding the acceptability of the E-levy as we move along. Whether they want to live with it and continue to use the platforms for their transaction.”
Speaking as a panel member of the Absa-UPSA Law School Quarterly Banking Roundtable VIII on Thursday, June 16 on the topic; “MONETARY POLICY, CENTRAL BANK LEADERSHIP AND THE STABILITY OF THE CEDI,” Mr. Abradu-Otoo further noted that the BOG delivering on its mandate and that inflation surge started in the first half of 2021.
However, he did not overrule the impact of geopolitical tension in Eastern Europe and others that are out of our control and added that the inflation challenges could be apportioned to 80% foreign factors and 20% local shocks.
He emphasized that upon the adjustment of all the conditions in our consumer baskets, one will realize that our inflation is not doing badly.
Additionally, he noted that the BOG has several measures to ensure macroeconomic stability and those policies are really working at the Commercial Banks level.
Moreover, he indicated that the cash reserve ratio did really help hence the stability in the exchange rate, and added that the price stability objective will continue.
The Electronic Transfer Levy Act, 2022 (Act 1075) assented to by the President of the Republic, Nana Akufo- Addo on March 31, 2022, imposed the Electronic Transfer Levy on electronic transfers.
What transfers are covered under E-Levy?
The following transfers are covered under the levy and thus will see the levy deductions;
- Mobile money transfers done between accounts on the same electronic money issuer
- Mobile money transfers from an account on one electronic money issuer to a recipient on another electronic money issuer
- Transfers from bank accounts to mobile money accounts
- Bank transfers on an instant pay digital platform or application originating from a bank account belonging to an individual are subject to a threshold to be determined by the Minister
Transactions not covered under the Levy
The Levy shall not apply when;
- A cumulative transfer of one hundred Ghana Cedi a day is made by the same person
- A transfer is made between accounts owned by the same person
- A transfer is made for the payment of taxes, fees, and charges on the Ghana Gov system or any other Government of Ghana designated payment system
- Specified merchant payments are made
- Transfers are made between principal, agent, and master-agent accounts and
- Electronic clearing of cheques is made
Who is in charge of the collection and administration of the Levy?
The Ghana Revenue Authority (GRA) shall be in charge of the collection of the Levy. As such, the Commissioner-General shall administer the same.
Rate of the Levy
The rate of the Electronic Transfer Levy is 1.50 % on electronic charges.