The Ghana Revenue Authority (GRA) has officially announced the complete
abolition of the Electronic Transfer Levy (E-Levy). This follows the
President’s assent to the Electronic Transfer Levy Act, 2022 (Act 1075), and
its Amendment Act, 2022 (Act 1089), earlier today. The directive takes effect
immediately, and financial institutions must comply without delay.
According to a statement from Edward Apenteng Gyamerah, Commissioner of the
Domestic Tax Revenue Division, all banks, mobile money operators, and other
financial service providers must stop charging the 1% levy on electronic
transactions from midnight, April 2, 2025. The GRA has warned that institutions
that fail to follow this order will face strict legal actions and financial
penalties.
The directive states that the GRA's Electronic Transfer Levy Management and
Assurance System (ELMAS) will now process all transactions without deducting
the levy. Charging entities have been instructed to reconfigure their systems
to ensure that electronic transfers do not attract any deductions. Any
financial institution that fails to comply will be sanctioned accordingly.
A crucial part of this development is the requirement for financial service
providers to refund any deductions made after the abolition date. Customers who
notice deductions are encouraged to contact their service providers for
immediate refunds. Charging entities must also provide detailed reports of all
processed refunds to the GRA to ensure full compliance.
In addition, financial institutions are required to settle any outstanding
E-Levy amounts collected before April 2. The GRA has issued a strong warning
that failure to remit these amounts could result in legal consequences. To
enforce compliance, the tax authority will conduct regular checks on banks,
mobile money platforms, and other financial institutions to ensure that the
directive is strictly followed.
The removal of the E-Levy comes as a relief to many Ghanaians who have
raised concerns about the impact of the tax on digital transactions. When the
levy was first introduced, mobile money usage declined, as many users opted for
cash transactions instead. Economic experts believe that scrapping the tax will
encourage more people to use electronic payment systems, boosting financial
inclusion and promoting Ghana’s digital economy.
The move has been welcomed by both individuals and businesses, who believe
that the removal of the levy will reduce financial burdens and enhance digital
transactions. Many businesses, especially those that rely on online payments,
have struggled with reduced transactions due to the additional charges imposed
by the levy.
Meanwhile, some financial analysts argue that while the abolition of the
levy is a positive step, the government may need to find alternative ways to generate
revenue. The E-Levy was introduced as a means of boosting government revenue,
and its removal could create a shortfall in tax collection. However, the
government is optimistic that the increased volume of digital transactions will
generate sufficient revenue through other means such as VAT and income tax.
Despite the excitement surrounding the abolition, the GRA has made it clear
that all financial institutions must ensure full compliance. Banks, mobile
money operators, and fintech companies are required to maintain proper records
of electronic transactions for at least six years, in line with the Revenue
Administration Act, 2016 (Act 915). This will allow for proper auditing and
accountability in the financial sector.
The scrapping of the E-Levy is expected to restore confidence in electronic
payment systems, leading to increased adoption of digital transactions. Many
businesses that previously suffered losses due to reduced mobile money activity
may see a rise in sales as customers resume the use of electronic transfers
without the fear of extra charges.
This latest directive is part of the government's broader strategy to
support economic growth and financial inclusion in Ghana. Experts say that the
elimination of the tax will encourage more people to embrace mobile banking,
online payments, and digital transactions, ultimately benefiting both consumers
and businesses.
As the country adjusts to this new policy, financial institutions are
expected to implement the necessary system changes without delay. The GRA will
continue to monitor compliance and enforce penalties on any entity that fails
to adhere to the new regulations. With this development, Ghanaians can now send
and receive money electronically without worrying about additional costs.
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