- Gov’t removes daily threshold
- Reduces rate to 1%
Government has decided to remove the GH¢100 daily threshold on the Electronic Transfer Levy (E-levy) and reduce the headline rate from 1.5 percent to 1 percent.
The Finance Minister, Ken Ofori-Atta, revealed this in his presentation to parliament of the 2023 Budget Statement and Economic policy.
“We will review the E-Levy Act and, more specifically, reduce the headline rate from 1.5 percent to 1 percent of the transaction value as well remove the daily threshold,” he said.
The E-levy review, among other reforms and interventions, according to the Finance Minister, forms part of revenue measures aimed at restoring macro-economic stability and accelerating economic transformation.
The move, he also said, is in response to proposals government has received for a review of the levy.
“Government has consistently indicated its intention to improve the revenue collection effort by leveraging technology to enhance tax administration, identify and register taxable persons, and improve tax compliance.
“Government has received several proposals for a review of the Electronic Transfer Levy, and is working closely with all stakeholders to evaluate the levy’s impact in order to decide on the next line of action – which will include a revision of the various exclusions.
“As a first step, however, the headline rate will be reduced to 1 percent of the transaction value alongside removal of the daily threshold,” he said.
As other means to aggressively mobilise domestic revenue, Mr. Ofori-Atta also announced “an increase in the VAT rate by 2.5 percent to directly support our roads and digitalisation agenda; and Fast-tracking implementation of the Unified Property Rate Platform programme in 2023.
Parliament, on Tuesday, March 29, 2022, passed the Electronic Levy bill. The E-levy was introduced by government in the 2022 Budget, with the objective of broadening the country’s tax base by imposing the levy on electronic transfers to enhance government’s drive for revenue mobilisation.