E-Levy Passed At 1% With Existing Threshold

The Parliament of Ghana has approved the amendment of the Electronic Transfer Levy (E-levy).

Reading the 2023 Budget Statement and Economic Policy in November, Finance Minister Ken Ofori Atta said the 1.5% levy was to be reduced to 1% while the daily threshold of GHc100 was to be scrapped.

But the Minority opposed the review stating that it would be a disincentive to Ghana’s quest to establish a cashless economy.

On Wednesday when the bill was presented before the plenary, it was passed at a rate of 1% with the GHc100 threshold.

The Electronic Transfer Levy initially regulated by the Electronic Transfer Levy Act, 2022 (Act 1075) was introduced in the 2022 Budget at a rate of 1.75% but was later reviewed to 1.5%.

The levy which came into force on May 1, 2022, was marked to be used to support entrepreneurship, youth employment, cyber security, and digital and road infrastructure, among others.

The 1.5% levy currently applies to 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; transfers from mobile money accounts to bank accounts; and Bank transfers on an instant pay digital platform or application originating from a bank account belonging to an individual subject to a daily threshold to be determined by the Minister of Finance.

Source: opemsuo.com/Hajara Fuseini