E-Levy: Ghana Revenue Authority Backs Down On Full Implementation From May 1

E-Levy: Ghana Revenue Authority Backs Down On Full Implementation From May 1

  • The GRA has said the full implementation of the E-Levy from May 1 will not happen as earlier announced
  • The government agency for collecting taxes said the decision was taken after assessing the readiness of charging entities to integrate with the E-Levy system
  • The GRA has stated that from May 1, 2022, it will roll out a "phased-approach" for the collection of the 1.5% tax

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The Ghana Revenue Authority (GRA) has backed down on plans to fully implement the Electronic Transactions Levy (E-Levy) tax from May 1.

In a release dated April 28, 2022, to all charging entities, the GRA announced that the operation of the controversial tax will be done on a "modified phased-approach" from the start of May.

The GRA explained that the decision to modify the approach to charging the 1.5% tax on electronic transactions follows an assessment of the general readiness of the charging entities to integrate with the E-Levy management system.

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Electronic transaction
Man connects phone to POS to pay electronically. Source: Facebook/@newsghana.
Source: Facebook

The outcome of the assessment was not stated in the release sighted by YEN.com.gh.

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However, many believe that the GRA would only back down on full implementation of the levy because many charging entities are poorly prepared.

The new development has been described as a vindication for lawmaker Sam Nartey George.

The Ningo-Prampram lawmaker has been a fierce critic of the government's timeline for fully implementing the new tax.

"Ghana Revenue Authority – Official next time take technical advice when it is given. When you rush, you would crush. Cheers," he said in a Facebook post.

An hour before this post, he posted that he was highly confident that the GRA would not be able to implement the levy fully.

"They either postpone start date or revert to Phase 1 implementation as earlier advised," he stated.

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Some people went into the comments section of his Facebook post to heap praises on him.

Don Arnold commented, "Truly vindication is the womb of time!! Kudos Hon Sam Dzata George."
"You have be vindicated Sam Dzata George," another person posted.
"They don't know the thing yet they will be making paapaa...What a clueless people," another commentator criticised the government.

E-Levy: Sam George Lists Five Technical Reasons May 1 Implementation Will Be Impossible

Earlier YEN.com.gh reported that Sam George, who is also a ranking member on Parliament's Communication Committee, has listed five technical reasons government's plan to fully implement the E-Levy from May 1 will be impossible.

He said there are technical and legal hurdles that government does not seem capable of dealing with by next month.

In a tweet earlier this month to silence critics of similar comments on Citi TV, the opposition legislator said he is convinced that there would be a "catastrophe of an abysmal implementation."

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Source: YEN.com.gh

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