The Electronic Transaction Levy (e levy) has been passed in Ghana. Find out the meaning, chart, and charges on mobile money (MoMo) as well as transactions covered under E-Levy in Ghana.
What is the Meaning of E-Levy?
E-Levy is an acronym for Electronic Transaction Levy a tax applied on transactions made on electronic or digital platforms such as Mobile Money (MoMo) and Bank Transfer.
When is E-Levy Starting in Ghana?
The E-Levy is starting in May 2022. The Controller and Accountant General Department (CAGD) and the Ghana Revenue Authority (GRA) has indicated that at the beginning of May all system will be set.
About E-Levy (Ghana)
The Electronic Transaction Levy commonly known as E-Levy Bill was passed after deliberations at the Consideration Stage was concluded by a Majority-sided House of parliament on Tuesday, March 29, 2022.
The e-levy provides a means for all Ghanaians to help support their country and grow this economy as compliant citizens giving to Caesar what belongs to Caesar.
The significance of the e-levy in Ghana means that the finances of our country are not rudderless. It means there is deliberateness, care, compassion, and forbearing. It means there is accountability. It means the economy is being managed well. This is a true story.
The Bill, which was considered under a certificate of urgency, proposed a reduced rate of 1.5% from the initial 1.75% charges.
Delivering the 2022 State of the Nation Address (SONA22) in Parliament, President Akufo-Addo has expressed delight at Parliament’s approval of the Electronic Transactions levy (e-levy). President Akufo-Addo is expected to assent to the Bill for it to become law.
E-Levy Transactions Will Not Cover
The following transaction will not cover any charges on e-levy
- Cumulative transfers of GH¢100 per day made by the same person.
- Transfers between accounts owned by the same person.
- Transfers for the payment of taxes, fees, and charges on the Ghana.gov portal.
- Electronic clearing of cheques.
- Specified merchant payments (i.e. payments to commercial establishments registered with GRA for Income Tax and VAT purposes).
- Transfers between principal, master-agent, and agent’s accounts.
E-Levy Transactions Will Cover
The following transaction will be charged by e-levy
- Mobile Money Transfers between accounts on the same electronic money issuer (EMI).
- Mobile Money transfers from an account on one EMI to a recipient on another EMI.
- Transfers from bank accounts to mobile money accounts.
- Transfer from mobile money accounts to bank accounts.
- Bank transfers on a digital platform or application originate from a bank account belonging to an individual to another individual.
E-Levy Chart and Charges on Mobile Money (MoMo) in Ghana
Below is a table showing the calculation of the E-levy at various transaction amounts.
| Amount | MoMo Charge | E-Levy Charge | Total Charges | Total Amount Deducted |
|---|---|---|---|---|
| GHS 50.00 | GHS 0.50 | – | GHS 0.50 | GHS 50.50 |
| GHS 100.00 | GHS 0.75 | – | GHS 0.75 | GHS 100.75 |
| GHS 150.00 | GHS 1.13 | GHS 2.25 | GHS 3.38 | GHS 153.38 |
| GHS 200.00 | GHS 1.50 | GHS 3.00 | GHS 4.50 | GHS 204.50 |
| GHS 250.00 | GHS 1.88 | GHS 3.75 | GHS 5.63 | GHS 255.63 |
| GHS 300.00 | GHS 2.25 | GHS 4.50 | GHS 6.75 | GHS 306.75 |
| GHS 500.00 | GHS 3.75 | GHS 7.50 | GHS 11.25 | GHS 511.25 |
| GHS 600.00 | GHS 4.50 | GHS 9.00 | GHS 13.50 | GHS 613.50 |
| GHS 700.00 | GHS 5.25 | GHS 10.50 | GHS 15.75 | GHS 715.75 |
| GHS 800.00 | GHS 6.00 | GHS 12.00 | GHS 18.00 | GHS 818.00 |
| GHS 900.00 | GHS 6.75 | GHS 13.50 | GHS 20.25 | GHS 920.25 |
| GHS 1,000.00 | GHS 7.50 | GHS 15.00 | GHS 22.50 | GHS 1,022.50 |
| GHS 2,000.00 | GHS 15.00 | GHS 30.00 | GHS 45.00 | GHS 2,045.00 |
| GHS 5,000.00 | GHS 37.50 | GHS 75.00 | GHS 112.50 | GHS 5,112.50 |
| GHS 10,000.00 | GHS 75.00 | GHS 150.00 | GHS 225.00 | GHS 10,225.00 |
| GHS 20,000.00 | GHS 150.00 | GHS 300.00 | GHS 450.00 | GHS 20,450.00 |
The MOMO Tax in Ghana is now a 1.5 % (percent) charge on all electronic transactions (E levy).
Here is the list of e levy charges/taxes on mobile money (MoMo) transactions in Ghana.
NB:
- The Telcos have agreed to reduce charges from 1% to 0.75%
- The E-Levy Charges have been reduced from 1.75% to 1.5%
- There are no e levy charges for the first GH¢ 100 per day