Mr Isaac Kwabena Amoako, a member of
the E-Levy Technical Committee, says the collection of the E-levy will increase
the country’s tax-to-Gross Domestic Product ratio from 12.5 per cent in 2021 to
20 per cent by 2024.
He said out of the country’s population of over 30 million, only 2 million
people paid direct taxes of which 12 million were active workers.
The e-levy, he said, was among interventions to bring on board informal sectors
and other organisations or institutions on the country’s tax net.
Mr Amoako said this at a sensitization programme for some identifiable groups
on the implementation of the Electronic Transfer Levy Act,2022 (Act 1075),
organized by the Ghana Revenue Authority (GRA).
The Act imposes a levy on all applicable electronic transfers made other than
electronic transfers that are excluded under the Act.
Government's decision to introduce the levy, he stated, was to enhance domestic
tax mobilisation and expand the tax base and provide the opportunity for the
citizenry to contribute to national development.
Mr Amoako, who is also the Head of Project Management Team of GRA, said the
levy did not apply to persons who withdraw money from their mobile money wallet.
He explained that transfers that were not covered by e-levy include cumulative
transfer of GHS 100 per day made by the same person using mobile money and
transfer between accounts owned by the same person.
"For example, a transfer from Naa’s AirtelTigo wallet to her MTN wallet or
from her Fidelity bank account to her Prudential bank account or from her
CalBank savings account to her current or investment account will not attract
the Levy because Naa has linked all accounts with her Ghana Card," he said.
Other transfers that do not attract e-levy charges are transfers for the
payment of taxes, fees, and charges, electronic clearing of cheques, Specified
Merchant Payments, and transfers among principal, agent, and master-agent
accounts.
He explained that, in the Act, transfers that fall under the E-Levy were mobile
money transfers done between wallets on the same electronic money issuer,
sending money from one Vodafone Cash wallet to another person’s AirtelTigo
wallet, transfers from bank accounts to mobile money wallets, transfers from
mobile money wallets to bank accounts and bank transfers on an instant pay
digital platform or application which originates from a bank account belonging
to an individual.
"For example, Kwame transferring money from his ADB account using the ADB
App to Akua's National Investment Bank account," he said.
He said the levy was charged by mobile money providers like MTN Momo, Vodafone
Cash, AirtelTigo Money, Zeepay, GCB G-Money, and Yup Ghana and payment Service
Providers like e-Tranzact, JuniPay, Korba, Nsano, banks like Consolidated Bank
Ghana, GCB Bank, ADB and Specialised Deposit-Taking Institutions such as Rural
and Community Banks, Savings and Loans Companies, Finance Houses and other
Financial Institutions prescribed by Regulations.
Responding to concerns from the participants on wrong deductions, Mr Amoako
said any undue deductions should be reported to the appropriate sector for
refund.
He said from July 1, 2022, taxpayers can only use Ghana Card for refund of any
wrong deductions.
Source: GNA