E-levy (Ghana)

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Electronic Transaction Levy (commonly known as Electronic Levy or E-levy) is a tax applied on transactions made on electronic or digital platforms. [1] [2]

Contents

Proposal

On 17 November 2021, Ken Ofori-Atta said the Government of Ghana decided to tax all electronic transactions in the informal sector to cover the tax net. [3] [4] He made this known in the 2022 budget statement and economic policy that was read in the parliament of Ghana. [5] 1.75% is the rate of the E-levy which the Government decided to apply on all transactions. [1] [6] [7] [8] Ken Ofori-Atta said it could raise about $1.15billion which will widen the tax net. [9] According to John Kumah, the money generated from the levy would be used for the payments of contractors in Ghana. [5] Also, revenue from the levy would be used to support entrepreneurship, cyber and digital security; road infrastructure and provide jobs to about 11million people in the country. [10] [11] [12] The Government of Ghana said that the introduction of the levy was due to the rise of the use of digital platforms for transactions because of the COVID-19 pandemic. [11]

Transactions

It was proposed the E-levy would cover the following transactions:

Controversy

Some Ghanaians were against the levy claiming it does not serve the interest of common people. [14] [15]

Some economists asked for the proposal to be reversed, claiming that it will jeopardize the government's digitalization efforts and plans to introduce the digital currency. [3] [16]

Haruna Iddrisu said the Minority in Parliament would not support the E-levy claiming it seeks to take away the money of a bigger proportion of Ghanaians in multiple phases. [17] [5]

In December 2021, brawl broke out in the Parliament of Ghana as some MPs of NDC and NPP started punching, ripping shirts, kicks and head-butting each other due to the disagreement of the E-levy bill. [18] [19]

Casiel Ato Forson claimed minority in parliament would reject the E-levy proposal. [20] [21] Kojo Oppong Nkrumah claimed changes were made the E-levy bill after consultations were held, [22] and would be passed when Alban Bagbin is presiding. [23]

Joseph Osei Owusu adjourned sitting of parliament without the passage of the bill into an Act. [24]

Asiedu Nketiah has presented some E-Levy alternatives. The measures, he claims, will exacerbate the deficit that will be produced if the government abandons the contentious electronic transfer levy. [25]

Shatta Wale, a dancehall musician, has weighed in on Ghana's contentious E-vey bill, which has been trending for weeks. According to him, lawmakers that are eager to introduce the electronic transaction tax are unconcerned about Ghanaians' plight. [26]

Developments

MTN and AirtelTigo decided to reduce about 25% on their person-to-person mobile money transfer charges should the levy be passed. [27]

E-levy has been passed by parliament and will take effect from 1st May, 2022. Despite the passage of E-levy, the minority in Ghana's parliament are set to challenge it, at the supreme court. According to them the passage of E-levy is illegal because parliament lacked the required numbers to do so. [28] [29]

Abolition

The National Democratic Congress (Ghana) campaigned before the 2024 Ghanaian general election to scrap the E-levy when voted into power. [30] [31]

On March 11, 2025, the finance minister, Cassiel Ato Forson, announced during the 2025 budget presentation that his government will scrap the E-levy in fulfilment of their campaign promise. [32] [33] [34]

On April 2, 2025, President John Mahama assented the bill to repeal E-levy, Betting tax and Others. [35]

References

  1. 1 2 3 "What is the E-Levy?". Modern Ghana. Retrieved 2022-01-15.
  2. Online, Peace FM. "Razak Kojo Opoku Writes: E-Levy Is A Panacea To Sustain Developmental Projects". Peacefmonline.com - Ghana news. Retrieved 2022-01-31.
  3. 1 2 "Afenyo-Markin: E-Levy is a game-changer for Ghana". Asaase Radio. 2021-11-22. Retrieved 2022-01-15.
  4. "'We will fight for the ordinary Ghanaian and ensure that e-levy dies' - Ato Forson - MyJoyOnline.com". www.myjoyonline.com. Retrieved 2022-01-15.
  5. 1 2 3 Ghana, News. "Ghana's E-levy to generate GH₵6.9 billion next year to pay contractors | News Ghana". NewsGhana. Retrieved 2022-01-15.{{cite web}}: |first= has generic name (help)
  6. "Parliament to vote on controversial e-levy today". BusinessGhana. Retrieved 2022-01-15.
  7. Online, Peace FM. "E-Levy: Have A Mindset Of Paying More Taxes – Presby Moderator Tells Ghanaians". Peacefmonline.com - Ghana news. Retrieved 2022-01-15.
  8. "E-levy Bill laid before Parliament". GhanaWeb. 2021-12-17. Retrieved 2022-01-15.
  9. "Ghana MPs brawl in parliament over mobile money tax". BBC News. 2021-12-21. Retrieved 2022-01-15.
  10. "E-levy proceeds will create jobs for over 11 million people – Ofori-Atta". Ghanaian Times. 2021-12-07. Retrieved 2022-01-15.
  11. 1 2 "Finance Committee approves E-Levy". www.classfmonline.com. 2021-12-20. Retrieved 2022-01-15.
  12. "Momo tax is very wrong, will widen inequality – Prof Bokpin". Prime News Ghana. 2021-11-18. Retrieved 2022-01-15.
  13. "All you need to know about the E-Levy on MoMo, other electronic transactions". Prime News Ghana. 2021-11-19. Retrieved 2022-01-15.
  14. Boakye, Edna Agnes (2021-12-31). "E-Levy, other taxes will be counterproductive if gov't fails to fight corruption – GPCC". Citinewsroom - Comprehensive News in Ghana. Retrieved 2022-01-15.
  15. Online, Peace FM. "E-Levy Won't Solve All Our Problems - Charles Owusu". Peacefmonline.com - Ghana news. Archived from the original on 2022-01-23. Retrieved 2022-01-24.
  16. Nartey, Laud (2022-01-24). "E-levy: Concerns on proposed rate must be addressed - Afenyo-Markin". 3NEWS. Retrieved 2022-01-24.
  17. Agboklu, George. "E-Levy: Adjournment is an opportunity for further consultations – Minority Leader". www.gna.org.gh. Retrieved 2022-01-15.
  18. Dzidzoamenu, Isaac. "MPs exchange blows in Parliament over controversial E-Levy — Starr Fm" . Retrieved 2022-01-15.
  19. AfricaNews (2021-12-21). "Brawl in Ghana's parliament over proposed e-levy". Africanews. Retrieved 2022-01-15.
  20. "Finance C'ttee approves e-levy bill for consideration despite minority's resistance". Citinewsroom - Comprehensive News in Ghana. 2021-12-20. Retrieved 2022-01-15.
  21. Online, Peace FM. "Ato Forson's Court Case: An Attempt To Cow Minority Via Machiavellian Tactics - MP". Peacefmonline.com - Ghana news. Retrieved 2022-01-24.[ permanent dead link ]
  22. Nartey, Laud (2021-12-21). "E-levy: Remittances, bank transfer, merchant payment taken out - Gov't". 3NEWS. Retrieved 2022-01-15.
  23. "E-levy still on the table, will be passed when Bagbin is presiding – Oppong Nkrumah". GhanaWeb. 2022-01-15. Retrieved 2022-01-15.
  24. "Parliament of Ghana". www.parliament.gh. Retrieved 2022-01-15.
  25. "E-Levy: Stop the wastage, cut expenditure - Asiedu Nketia proposes alternatives - MyJoyOnline.com". www.myjoyonline.com. 2022-01-31. Retrieved 2022-02-01.
  26. Online, Peace FM. "Shatta Wale Sends Message To NPP Over E-Levy Bill (VIDEO)". Peacefmonline.com - Ghana news. Archived from the original on 2023-10-05. Retrieved 2022-02-04.
  27. "E-Levy: Telcos step in to cushion customers". Graphic Online. Retrieved 2022-01-15.
  28. "Ghanaians to start paying e-levy in may- Ken Ofori Atta". Modern Ghana. Retrieved 2022-04-10.
  29. "Minority to challenge passage of e-levy at Supreme Court". Ghana News Online. Retrieved 2022-04-10.
  30. "Mahama's gov't will surely abolish E-levy and COVID-19 levy - Joyce Bawah - MyJoyOnline". www.myjoyonline.com. Retrieved 2025-03-12.
  31. "Mahama will scrap COVID-19 levy, E-levy – Bawah Mogtari". 2025-01-08. Retrieved 2025-03-12.
  32. Offei, Duncan Ampofo (2025-03-11). "Budget25: Government to Scrap E-levy, Betting Tax and Others | Now Accra" . Retrieved 2025-03-12.
  33. "Full Text: 2025 Budget presented by Finance Minister". 2025-03-11. Retrieved 2025-03-12.
  34. "Government to abolish Covid-19 Levy - Ato Forson - MyJoyOnline". www.myjoyonline.com. Retrieved 2025-03-12.
  35. "Mahama signs Bills to abolish E-Levy, Betting Tax, others". 2025-04-02. Retrieved 2025-04-02.