Government is set to introduce an Electronic Transaction Levy or E-Levy to increase tax revenues for the country.
The introduction of the E-Levy is occasioned by the surge in mobile money transactions during the Covid-19 pandemic of 2020.
According to the Finance Minister, Ken Ofori-Atta, the total transactions for 2020 were estimated to be over ¢500 billion compared to GH¢78 billion in 2016, just five years ago.
Delivering the 2022 Budget Statement on the floor of Parliament, November 17, the Minister stated that “it is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.”
As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.
“Mr Speaker, to safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day, which is approximately ¢3000 per month, will be exempt from this levy,” he stated.
According to the Minister, proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, and digital and road infrastructure, among others.
“Mr Speaker, this new policy also comes into effect once appropriation is passed from 1st January 2022. Government will work with all industry partners to ensure that their systems and payment platforms are configured to implement the policy,” he said.
Latest Stories
-
Let’s prioritize research quality in higher education institutions for industrial growth-Prof. Nathaniel Boso
2 hours -
Herman Suede is set to release ‘How Dare You’ on April 24
6 hours -
Heal KATH: Kuapa Kokoo, Association of Garages donate 120k to support project
6 hours -
KNUST signs MOU with Valco Trust Fund, Bekwai Municipal Hospital to build student hostel
6 hours -
The influence Ronaldo has on people, Cadman Yamoah will have same on the next generation – Coach Goodwin
7 hours -
Gender Advocate Emelia Naa Ayeley Aryee Wins prestigious Merck Foundation Awards
8 hours -
South Africa bursary scandal suspects granted bail
8 hours -
Ecobank successfully repays $500m Eurobond due April 18
8 hours -
Re: Doe Adjaho, Torgbui Samlafo IV, call for Unity among Paramountcies in Anlo
8 hours -
Extortion and kidnap – a deadly journey across Mexico into the US
9 hours -
Rihanna says fashion has helped her personal ‘rediscovery’ after having children
9 hours -
Development Bank Ghana targets GH¢1bn funding for commercial banks in 2024
9 hours -
Shatta Movement apologises to Ghana Society of the Physically Disabled after backlash
10 hours -
Sammy Gyamfi writes: Tema-Mpakadan Railway Project; A railway line to nowhere
10 hours -
Bright Simons: Is the World Bank saving or harming Ghana?
10 hours