• Mon. Aug 15th, 2022

Ghana Parliament finally Approves the controversial E-Levy

ByEditor

Mar 29, 2022 ,

The E-Levy law was finally enacted by Ghana’s Parliament after months of debate between the two factions in the House of Representatives (NPP & NDC).

The Electronic Transaction Levy (E-Levy) has been the biggest topic in Ghana for some time now, since since the ruling administration introduced it, and it has sparked outrage across the country, with many people dissatisfied with the government’s choice to tax transactions.

Even without the attendance of the minority in Parliament, the controversial Electronic Transaction Levy (E-Levy) was passed on Tuesday afternoon, March 29th 2022.

The Minority in Parliament (The NDC), who are still standing firm in their previous decision to consider the well-being of Ghanaian citizens by voting against the new tax, walked out of the Parliament building as the debate began on Tuesday afternoon, but the Minority in Parliament (The NPP) made it count as they passed it.

The introduction of the tax, according to NDC MPs, will cause tremendous hardship for Ghanaians. They left the house because they didn’t want anything to do with the levy, which they were fighting tooth and nail to keep from passing.

After the Consideration Stage was finished under a certificate of urgency, the bill was finally passed without the Minority side.

Instead of the original 1.75 percent, the majority quickly amended it to 1.5 percent, implying that individuals will be taxed 1.5 percent tax on every mobile money transaction they make.

“Honourable colleagues, the Electronic Transfer Levy Bill 2021 has been duly read a third time and passed,” remarked the Speaker.

The Parliament, on the other hand, has been adjourned until March 30, 2022.

The following is a list of transactions that will be affected by the new E-Levy, as well as those that will be unaffected.

Transactions E-Levy will Affect

  • Mobile money transfers between accounts on the same electronic money issuer (EMI)
  • Mobile money transfers from an account on one EMI to a recipient on another EMI
  • Transfers from bank accounts to mobile money accounts
  • Transfer from mobile money accounts to bank accounts
  • Bank transfers on a digital platform or application which originate from a bank account belonging to an individual to another individual

Transactions E-Levy will NOT cover

  • Cumulative transfers of GHC100 per day made by the same person
  • Transfers between accounts owned by the same person
  • Transfers for the payment of taxes, fees and charges on the Ghana.gov platform
  • Electronic clearing of cheques
  • Specified merchant payments (that is, payments to commercial establishments registered with the GRA for income tax and VAT purposes)
  • Transfers between principal, master agent and agent’s accounts

 

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