The Ghana Revenue Authority (GRA) has officially issued guidelines following the abolition of the 1% Electronic Transfer Levy (E-Levy), effective today.
This comes after the President of the Republic of Ghana assented to the Electronic Transfer Levy Act, 2022 (Act 1075) and its amendment (Act 1089), thereby eliminating the controversial tax on electronic transactions.
The GRA has outlined the following directives for all financial institutions and payment platforms, known as charging entities:
- Immediate Implementation – The GRA’s Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically configure a “no charge” policy on all transactions posted from midnight.
- Cessation of E-Levy Charges – All charging entities must stop deducting the 1% E-Levy on all digital transactions effective April 2, 2025.
- Refund Processing – Institutions must process refunds for any E-Levy amounts deducted from customers on April 2, 2025, and beyond. A fast-tracked refund system is to be established, with proper documentation submitted to GRA.
- Outstanding Payments – All entities must ensure full payment of outstanding E-Levy charges collected before April 2, 2025.
What This Means for Ghanaians
The E-Levy, which was introduced in 2022 to boost government revenue, faced widespread opposition from the public and businesses, who argued that it increased the cost of digital transactions. The removal of this levy is expected to enhance financial inclusion, boost digital payments, and reduce transaction costs for businesses and individuals
Experts believe that scrapping the E-Levy could lead to increased mobile money and digital transactions, driving economic growth. However, the government will need to identify alternative revenue sources to fill the gap left by the abolished levy.
Many Ghanaians have welcomed the move, with social media buzzing with praise for the decision. Business owners, fintech operators, and consumers expect a seamless transition and prompt refunds where necessary.
The GRA urges all charging entities to comply with the new directives immediately. Consumers are advised to monitor their transactions and report any unauthorized deductions.
Source:myinfotoday.com
