Connect with us

Banking and Finance

E-levy: Revenue target revised down to GH¢4.5 billion

Published

on

E-levy, Revenue, target, revised

The government has cut the revenue target from the Electronic Transactions levy (E-Levy) to GH¢4.5 billion in line with developments following the proposal of the levy in November last year.

The Commissioner-General of GRA, Reverend Dr. Ammisshaddai Owusu-Amoah, explained that the revision followed the reduction in the rate from 1.75 per cent to 1.5 per cent, the delay in implementing the levy and the negative sentiments that heralded the proposal of the levy last year.

Dr. Owusu-Amoah added that GRA’s internal survey had indicated that electronic transactions would slowdown in the first days of the levy’s implementation before picking up.

He was, however, optimistic that transactions would stabilise in the medium term as people get used to the levy.

He said the various exemptions provided by the government were boosters to the usage of electronic transactions and thus urged the public to look at the convenience provided by digital transactions.

He also called on the public to take the levy as one of their little contributions to nation building.

The levy was initially programmed to take off in February and would have covered all electronic transactions, including bank transfers.

In the 2022 Budget statement that it was proposed, the government said it aimed to collect GH¢6.9 billion from the levy.

But following the controversy that met its proposal, the levy was not passed by Parliament until March this year.

It is now scheduled to take effect from Sunday.

The GRA boss said the Authority and the three charging entities – the banks and specialised deposits-taking institutions (DFIs), the electronic money issuers (EMIs) and the telecommunications companies (telcos) – have put in place the relevant system and mechanisms for the public to start paying 1.5 per cent of the levy on daily electronic transfers above GH¢100.

This means that from Sunday, all electronic transfers that are done in a day and above GH¢100 will attract a 1.5 per cent levy to be remitted to the GRA to support the government fund development.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending