The Ghana Revenue Authority (GRA) has officially declared the abolition of the 1% Electronic Transfer Levy (E-Levy), a move that takes effect immediately. This follows the President’s approval of the Electronic Transfer Levy Act, 2022 (Act 1075) and its Amendment Act, 2022 (Act 1089). As of midnight on April 2, 2025, all financial institutions and mobile money operators are required to stop applying the levy on electronic transactions.
In a directive issued by Edward Apenteng Gyamerah, the Commissioner of the Domestic Tax Revenue Division, on behalf of the Commissioner-General, all Charging Entities must update their systems to ensure that no further deductions are made for the E-Levy. The GRA’s Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically register a “no charge” on all transactions going forward. Any institution that fails to comply or continues to deduct the levy will face legal consequences.
Furthermore, financial institutions and mobile money providers must initiate immediate refunds for customers who have been charged the 1% levy after the abolition date. These entities are also required to establish an efficient refund system and maintain proper documentation of all processed refunds. Additionally, the GRA has mandated that detailed reports on refunds be submitted for review.
While the levy has been removed for future transactions, the GRA emphasized that institutions must account for any outstanding E-Levy collected before April 2, 2025. Charging Entities are required to file reports and remit all collected levies from transactions that took place before the abolition date. Institutions that fail to comply with this directive will be subject to penalties under Ghanaian tax laws.
To ensure full adherence to these new regulations, the GRA has announced that it will conduct regular compliance checks on all financial service providers. Institutions found violating the new directive will be subject to legal action. Additionally, financial institutions and mobile money operators must maintain transaction records for at least six years, as required by Ghana’s Revenue Administration Act, 2016 (Act 915).
The abolition of the E-Levy is expected to positively impact Ghana’s digital economy by reviving mobile money transactions, which had declined since the levy’s introduction. Economic analysts believe that removing the tax will encourage more people to embrace electronic financial services, thereby enhancing financial inclusion in the country.
Although the E-Levy was originally implemented as a revenue-generating measure, its removal reflects a strategic shift aimed at boosting economic activity and fostering digital transactions. The GRA has made it clear that strict monitoring will continue to ensure that all institutions comply with the new directive, reinforcing the commitment to transparent and effective tax administration.
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