Gov’t reduces E-levy rate from 1.5% to 1%

fthghana
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The Finance Minister during the 2023 Budget have announced that government has reduced the rate of the Electronic Transfer Levy (E-Levy) to 1 per cent.

According to the Minister, the E-Levy rate has been reduced from 1.5% to 1%, to aid government get more citizens to use the service in order to generate more revenue.

“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.

The controversial Electronic Transfer Levy Act, 2022 (Act 1075) has not yielded any positive income since it was passed in March 2022.

The 1.5% rate was a slashed from the initially proposed 1.75 to 1.5% and now to 1 per cent.

Since the implementation of the E-Levy charges, mobile money transactions has drastically reduced compared to that of 2017 and 2021 which saw an increase from ¢1.55 billion to GH¢9.86 billion.

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