The ruling government has announced a reduction of the Electronic Transfer Levy rate from 1.5% to 1%.
Finance Minister, Ken Ofori Atta who made this known while presenting the 2023 budget statement further revealed that the Ghc100 daily threshold has been removed.
This, according to the government, will allow more Ghanaians to use the service.
“Review the E-Levy Act and more specifically, reduce the headline rate from 1.5% to 1% of the transaction value as well as removal of the daily threshold,” Ken Ofori-Atta said.
Meanwhile, he also announced a proposal to “increase the VAT rate by 2.5 percent to directly support our roads and digitalization agenda; Fast-track the implementation of the Unified Property Rate Platform programme in 2023"
The Electronic Transfer Levy Act, 2022 (Act 1075) imposes a levy of 1.5% on electronic transfers.
The 1.5% rate was a downward revision from the initially proposed 1.75%.
The government introduced "this to enhance domestic tax mobilization and expand the tax base and provide an opportunity for everyone to contribute towards national development".
Mobile money transactions between 2017 and 2021 increased from ¢1.55 billion to GH¢9.86 billion, but the figure has drastically reduced.