All there is to know about the Electronic Transfer Levy Act, 2022 (Act 1075)

The Electronic Transfer Levy Act, 2022 (Act 1075) as assented to by the President of the Republic, Nana Akufo- Addo on March 31, 2022, has imposed the Electronic Transfer Levy on electronic transfers.

Why Electronic Transfer Levy?

The E-Levy seeks to enhance revenue mobilization by broadening the tax base and for related matters.

What transfers are covered under E-Levy?

The following transfers are covered under the levy 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.

Where will the tax collected go to?

The levy collected will be paid into the Consolidated Fund by the Commissioner-General of the GRA.

How will the performance of the Revenue be reported?

Under the Act, the GRA is expected to submit to the Finance Ministry, quarterly reports on the performance of revenues generated from the tax, one month after the end of each quarter.

The Finance Minister will equally submit to Parliament, a report on the funds accrued from the tax, in the mid-year budget review and within two months after the end of the financial year, covering the second half.