Ghana Abolishes E-Levy: Immediate Compliance Ordered by GRA
In a major financial policy shift, the Ghana Revenue Authority (GRA) has announced the immediate abolition of the 1% Electronic Transfer Levy (E-Levy). This move follows the President’s approval of the Electronic Transfer Levy Act, 2022 (Act 1075) and its Amendment Act, 2022 (Act 1089), which officially nullifies the tax.
Effective from midnight on April 2, 2025, all banks, financial institutions, and mobile money operators have been instructed to stop applying the levy on electronic transactions. Furthermore, any deductions made beyond this date must be promptly refunded to customers.
Strict Compliance Measures
Edward Apenteng Gyamerah, Commissioner of the Domestic Tax Revenue Division, issued a directive on behalf of the Commissioner-General, emphasizing that all charging entities must update their systems to reflect the removal of the levy. The GRA’s Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically ensure that transactions processed from midnight return a “no charge” status.
To guarantee consumer protection, the directive mandates all financial institutions and mobile money operators to initiate immediate refunds for any erroneous deductions. Companies are required to establish an expedited refund mechanism and maintain accurate records of all reimbursements. In addition, detailed reports of processed refunds must be submitted to the GRA.
Penalties for Non-Compliance
Although the levy has been abolished, institutions must still account for any outstanding E-Levy collected before April 2. Charging entities are expected to file and remit all due payments, as failure to do so could lead to legal consequences. The GRA has warned that any entity found still applying the levy or failing to refund customers will face sanctions.
To enforce compliance, the GRA will conduct routine audits and inspections of financial institutions and payment platforms. Any breach of these directives will be treated as a legal offence, with penalties enforced under Ghana’s tax laws. Additionally, financial institutions are required to retain electronic transfer records for at least six years, as per the Revenue Administration Act, 2016 (Act 915).
Impact on Ghana’s Digital Economy
The elimination of the E-Levy is expected to rejuvenate mobile money transactions and promote digital payments, which had declined since the tax was introduced. Economic analysts see this as a strategic move to enhance financial inclusion and accelerate the country’s transition towards a fully digital economy.
With the levy now scrapped, Ghanaians can conduct electronic money transfers without incurring additional costs. The GRA remains committed to ensuring full adherence to this directive, reinforcing that non-compliance will attract legal action.
This bold policy shift signals a new chapter for Ghana’s financial sector, offering relief to consumers and fostering a more accessible and efficient digital transaction ecosystem.
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