Government has slapped a 1.75% tax on all Mobile Money transactions and other electronic banking transactions.
The Finance Minister made this known while presenting the 2022 Budget Statement and Economic Policy Statement to Parliament on Wednesday, November 17, 2021.
The E-Levy will cover mobile money payments (MoMo), bank transfers, merchant payments and inward remittances.
He, however indicated that the tax imposition will not affect transactions that add up to GH¢100 or less per day.
“After considerable deliberations, 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 inward remittances, which will be borne by the recipient.
“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.”
“We wish to reiterate that we are in challenging times, which require radical measures, so let us embrace these new policies to enable Government address the fundamental issues affecting the economy.”
“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. 3y3 Baako, Ye nyinaa bey tua.”