Gov’t To Scrap Daily E-levy Threshold And Reduce Rate To 1%

The Minister for Finance, Ken Ofori Atta has announced a reduction in the 1.5% Electronic Transfers Levy (E-Levy).

This comes ahead of a revision of the levy, he said.

Electronic Transfer Levy 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.

Reading the 2023 Budget Statement and Economic Policy, Ofori Atta said the rate will be reduced to 1%.

At the same time, the daily threshold of GHC100 will be scrapped.

“As a first step, however, the headline rate will be reduced to one per cent (1%) of the transaction value alongside the removal of the daily threshold.”

The revision of the levy, he added, will also focus on the inclusion of the various exclusions.

He added, “Mr Speaker, Government has received several proposals for review of the Electronic Transfer Levy and is working closely with all stakeholders to evaluate the impact of the Levy in order to decide on the next line of action which will include revision of the various exclusions.”

Currently, the levy does not apply to Specified Merchant Payments, Cash-Outs/cash withdrawals and Cash-Ins/cash deposits, the bank or at a mobile money agent/vendor point.

The levy was estimated to generate a revenue of GHc6.9 billion but a month after its implementation, a leading member of the ruling party, Gabby Otchere Darko, said only 10% of estimated revenues were being raked.

Source: opemsuo.com/Hajara Fuseini