Gov’t introduces 1.75% levy on momo & other electronic transactions
Finance Minister Ken Ofori-Atta has announced new measures to widen the tax net.
The Minister says it is becoming clear there exists the 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”.
The Minister in his submission said after considerable deliberations, the government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector.
”This shall be known as the “Electronic Transaction Levy or E-Levy.”
Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except for inward remittances, which will be borne by the recipient.”
He further stated that 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 GH¢3000 per month) will be exempt from this levy.
”A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others. 3y3 Baako, Ye nyinaa bey tua.
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.”