Parliament Approves 1% E-Levy Rate, Rejects Removal Of GH¢100 Threshold

An amendment to the Electronic Transaction Levy (E-levy) Act brought before parliament on Wednesday, December 21, 2022, has received approval.

During the presentation of the 2023 Budget, Finance Minister Ken Ofori Atta announced a reduction of the e-levy rate from 1.5% to 1% and wanted to remove the daily non-taxable threshold of GH¢100.

Government sought to make the levy applicable to any amount transferred electronically.

The Minority subsequently declared their stance to object to the removal of the GH¢100 threshold.

However, the bill when submitted to the House on Wednesday for approval, had excluded the section which sought to remove the GH¢100 threshold.

The 1.5% rate was a downward revision from the initial 1.75% proposed earlier this year.

The introduction of the levy was met with many agitations and rejections. But the government said it was a significant revenue generation tax needed to shore up revenue for the economy.

Between 2017 and 2021 Mobile Money transactions increased from GH¢1.55 billion to GH¢9.86 billion, but the figure has since drastically reduced.

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