Revenue target for E-levy revised downwards by GHS 2.4bn by Finance Ministry
The Finance Ministry has revised downwards the GHS 6.9bn revenue target from the Electronic Transactions Levy (E-Levy) by GHS 2.4bn
The Ministry, is now targeting to raise some GHS 4.5bn from the levy.
According to the Commissioner-General of the Ghana Revenue Authority [GRA], Rev. Dr Ammisshaddai Owusu-Amoah, the revision follows the reduction in the charge rate from 1.75% to 1.5%, the delay in implementing the levy and the negative sentiments that heralded the proposal of the levy last year.
Adding that GRA’s internal survey had indicated that electronic transactions would slow down in the first days of the levy’s implementation before picking up.
He, however, expressed optimism that transactions would stabilise in the medium term as Ghanaians get used to the levy.
In the 2022 Budget statement the government said it aimed to collect GHS 6.9 billion from the levy.
But following the controversy that met its proposal, the levy was not passed by Parliament until March this year.
It is now scheduled to take effect from Sunday, May 1, 2022.
Rev. Dr Ammisshaddai Owusu-Amoah has said the Authority and the three charging entities; the banks and specialised deposit-taking institutions (DFIs), the electronic money issuers (EMIs) and the telecommunications companies (telcos) have put in place the relevant systems and mechanisms for the public to start paying 1.5% of the levy on daily electronic transfers above GHs 100.
Read: Public Enterprises to use league table to assess performance of SOEs starting May 1
E-levy is 95% ready for implementation
Meanwhile, government’s preparedness for the implementation of the Electronic Transaction Levy (E-levy) from May 1, 2022, has been scored 95 percent by Deputy Minister for Finance, Dr John Kumah.
Speaking in an interview, the Deputy Finance Minister noted that in the next 48 hours, government’s preparation to see to the implementation of the levy will be complete.
“We are 95 per cent ready. So the next 48 hours will make it 100 per cent. We are rolling out God willing May 1. The E-levy is coming to life,” he said.
His assurance comes a day after the Ghana Revenue Authority (GRA), the institution in charge of the collection of the tax, noted that it would not be able to fully implement the levy from May 1.
According to the GRA, it will commence the operationalization of the E-levy in a modified-phased approach.
The Authority’s decision follows an assessment carried out to test the general readiness of some charging entities to integrate with the E-Levy management system.
The new development is a snag in the Authority’s plan to fully implement the E-levy by May 1.
