E-levy, which simply means Electronic Levy, has become a major news discussion in Ghana recently since Parliament and the government of Ghana approved it. Many Ghanaians ponder a lot about how the E-levy has affected them financially and the best way to transact mobile money (MOMO) and other transactions and skip the E-levy charges. Here are steps to guide you in the full list of Transactions the E-Levy Will cover and those which it’ll not cover.
What Is E-Levy?
- E Levy-which means Electronic Levy.
- E-Levy is an Electronic Transaction Levy
- E-Levy is a tax applied on transactions made on electronic and digital platforms in Ghana
- The E-Levy was introduced by the Government of Ghana to tax all electronic transactions in the informal sector to broaden the tax net.
- The E levy will affect five principal transactions such as mobile money transfers, bank to bank transfers, bank to mobile money transfers, and online payment transactions with payment platforms such as Visa Card, Master Card, and PayPal among others.
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What Is The E-levy Charge?
E Levy charges require a 1.5% tax deductions from electronic transactions along with mobile money transfers, bank to bank transfers, bank to mobile money transfers, and online fee transactions with payment platforms which includes Visa Card, Master Card, and PayPal amongst others.
E-Levy Charges On Mobile Money
- A 1.5% tax will be deducted from Mobile money transactions between Mobile money accounts exceeding GHS100.
- What this means is that an amount of 1.5% will be deducted from all mobile money transfers above however withdrawal of money from mobile money accounts will not be taxed.
- The E Levy Charges will not affect mobile money transfers of or less made by one person in a day.
- However, all person-to-person mobile transactions such as sending of money to another account.
- payment for goods and services, payment of utilities among other electronic transactions will be affected.
- In addition, all Merchant payments and payments made with point of sale (POS) devices will equally be affected.
The Five(5) Major Transactions Affected By The E-Levy
- Mobile Money (MOMO) transfer between users on the same network.
- Mobile Money (MOMO) transfer between users on different networks.
- Transfer from bank account to MOMO accounts.
- Transfers from MoMo accounts to bank account.
- Inter-bank transfers using digital platforms including mobile applications.
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How To Calculate E-Levy Charges
E Levy Ghana Charges Exempted
- There will be no E Levy Charges on cumulative transfers of GHS100 per day made by the same person.
- There will be no E Levy Charges on transfers between accounts owned by the same person.
- There will be no E Levy Charges on transfers for the payment of taxes, fees, and charges on the
- There will be no E Levy Charges on the Electronic clearing of cheques.
- There will be no E Levy Charges on merchant payments to commercial establishments registered with the GRA for income tax and VAT purposes.
- There will be no E Levy Charges on Transfers between the principal, master agent and agent’s accounts.
How To Avoid E-Levy Payments
- Send an amount of GHS100 a day to your recipient till you have got exhausted the entire amount you want to send. For instance, if you want to send GHS 500 a month to your mother, starting, just send GHS100 a day, every day till she receives GHS 500, then she can go and cash out.
- Use cash transactions instead of Mobile Money Transfers
- Make Payments with Cheque