E-levy: Transfers that won’t attract charges

Ahead of the implementation of the Electronic Levy (e-levy) on May 1, 2022, the Ghana Revenue Authority, GRA has outlined transactions that will not be affected by the new tax policy.

Even though the e-levy is to broaden the tax net as stated by the Finance Minister, Ofori Atta, the GRA has exempted some transactions from the 1.5 per cent charges.

The Head of Compliance, Domestic Tax Revenue Unit at GRA, Mr Victor Yao Akogo speaking to the media listed transfers that will not be taxed as follows;

1. A cumulative transfer of ¢100 is made by the same person.
2. A transfer between accounts owned by the same person.
3. Transfers for the payment of taxes, fees, and charges on the Ghana.gov platform
4. Electronic clearing of cheques.
5. Specified merchant payments (that is, payments to commercial establishments registered with the GRA for income tax and VAT purposes)
6. Transfers between the principal, master agent, and agent’s accounts.

A Principal Revenue Officer and Head of the Project Management Unit, Mr Isaac Kobina Amoako also touched on transfers that will be affected and listed them as follows:

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1. Mobile money transfers are done between accounts on the same Electronic Money Issuer.

• Mobile money transfer to a receiver on another Electronic Money Issuer (interoperability transfer)
• Transfer from a bank account to [another person’s] mobile money account.
• From a mobile money account to [another person’s] bank account.
• Bank transfers on an instant paid digital platform.
• The GRA has, however, urged all and sundry to contribute to see this tax policy a success.

According to Mr Akogo, the revenue generated from this tax policy will help with the developmental agenda of the government.

The Authority has declared its readiness to enrol the policy on May 1.