How To Calculate E-levy Charges

How To Calculate E-levy Charges

E-levy, which simply means Electronic Levy, has become a major news discussion in Ghana recently since Parliament and the government of Ghana approved it. Many Ghanaians ponder a lot about how the E-levy has affected them financially and the best way to transact mobile money (MOMO) and other transactions and skip the E-levy charges. Here are steps to guide you in the full list of Transactions the E-Levy Will cover and those which it’ll not cover.

What Is E-Levy?

  • E-Levy which means Electronic Levy.
  • E-Levy is an Electronic Transaction Levy
  • E-Levy is a tax applied on transactions made on electronic and digital platforms in Ghana
  • The E-Levy was introduced by the Government of Ghana to tax all electronic transactions in the informal sector to broaden the tax net.
  • The E levy will affect five principal transactions such as mobile money transfers, bank-to-bank transfers, bank-to-mobile money transfers, and online payment transactions with payment platforms such as Visa Card, Master Card, and PayPal among others.

Read Also: How to Register for GhanaPay Mobile Money

What Is The E-levy Charge?

E Levy charges require a 1.5% tax deduction from electronic transactions along with mobile money transfers, bank-to-bank transfers, bank-to-mobile money transfers, and online fee transactions with payment platforms which include Visa Card, Master Card, and PayPal amongst others.

E-Levy Charges On Mobile Money

  • A 1.5% tax will be deducted from Mobile money transactions between Mobile money accounts exceeding GHS100.
  • What this means is that an amount of 1.5% will be deducted from all mobile money transfers above however withdrawal of money from mobile money accounts will not be taxed.
  • The E Levy Charges will not affect mobile money transfers of or less made by one person in a day.
  • However, all person-to-person mobile transactions such as sending money to another account.
  • payment for goods and services, payment of utilities among other electronic transactions will be affected.
  • In addition, all Merchant payments and payments made with point-of-sale (POS) devices will equally be affected.

The Five(5) Major Transactions Affected By The E-Levy

  • Mobile Money (MOMO) transfer between users on the same network.
  • Mobile Money (MOMO) transfer between users on different networks.
  • Transfer from a bank account to MOMO accounts.
  • Transfers from MoMo accounts to bank accounts.
  • Inter-bank transfers using digital platforms including mobile applications.

Read Also: Best Online Mobile Money Loan Apps in Ghana

How To Calculate E-Levy Charges

E-Levy Ghana Charges Exempted;

  1. There will be no E-Levy Charges on cumulative transfers of GHS100 per day made by the same person.
  2. There will be no E-Levy Charges on transfers between accounts owned by the same person.
  3. There will be no E-Levy Charges on transfers for the payment of taxes, fees, and charges on the
  4. There will be no E-Levy Charges on the Electronic clearing of cheques.
  5. There will be no E-Levy Charges on merchant payments to commercial establishments registered with the GRA for income tax and VAT purposes.
  6. There will be no E-Levy Charges on Transfers between the principal, master agent and agent’s accounts.

How To Avoid E-Levy Payments

  • Send an amount of GHS100 a day to your recipient till you have exhausted the entire amount you want to send. For instance, if you want to send GHS 500 a month to your mother, starting, with just sending GHS100 a day, every day till she receives GHS 500, then she can go and cash out.
  • Use cash transactions instead of Mobile Money Transfers
  • Make Payments with a Cheque

 Read Also: 5 Business Ideas to Start in Ghana with Little or No Money in 2024

Click the link to join our telegram channel for timely updates

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.