Finance Minister Ken Ofori Atta has announced in the reading of the 2022 Budget that all mobile money transactions will be charged with the new levy introduced to widen the tax net and rope in the informal sector.
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According to the Finance Minister, the introduction of the new levy on mobile money transactions is to increase tax revenues. This new levy introduced is known as the “Electronic Transaction Levy or E-Levy”.
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“Total value of transactions for 2020 was estimated to be over GHS 500 billion Cedis compared to GH¢78 billion Cedis in 2016 just 5 years ago, while total mobile money subscribers and active mobile money users have grown by an average rate of 18% and 16% respectively between 2016 and 2019. Mr. Speaker, it is becoming clear there exists the enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the “shadow economy”.
“After considerable deliberations, the Government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the “Electronic Transaction Levy or E-Levy.”
“Electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except for inward remittances, which will be borne by the recipient.
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“Mr. Speaker, to safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day (which is approximately GH¢3000 per month) will be exempt from this levy. A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others.
“Mr. Speaker, this new policy comes into effect from 1st February 2022. The government will work with all industry partners to ensure that their systems and payment platforms are configured to implement the policy.”
Source: www.ghgossip.com
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Source: GhGossip
