Ghana Rakes In GH¢810 Million From Controversial E-Levy In First Half Of 2024

• The government accrued GH¢810.5 million from the Electronic Transactions Levy during the first half of 2024
• The government hopes to raise GH¢2.1 billion from the Electronic Transactions Levy by end-of-year
• The levy is devised as a one percent tax on all electronic money transactions, with a daily free limit of GH¢100

The government raised GH¢810.5 million in revenue from the Electronic Transactions Levy (E-levy) during the first half of 2024.

This figure fell short of the half-year target of GH¢898.4 million but is still the highest half-year revenue generated from the controversial levy introduced in 2022.

The government hopes to raise GH¢2.1 billion from the levy by the end of 2024.

Ceditalk reported that the figure is significantly higher than the GH¢643.35 million gathered during the eight months of the levy’s implementation in 2022 and represents nearly 70 percent of the GH¢1.19 billion collected in 2023.

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The levy is a 1% tax on all electronic transactions, with a daily free limit of GH¢100 and specific exemptions.

At the time, the government said this was part of a seven-point agenda aimed at restoring macroeconomic stability and accelerating our economic transformation.

The levy has been wildly unpopular and sparked protests from regular Ghanaians and mobile money vendors who have decried double taxation.

Former Finance Minister Dr Kwabena Duffuor urged the government to scrap the levy because it was not meeting revenue targets.

At the time of his comments, the government missed the levy revenue target by over 50 percent, according to the 2023 budget review.

Mahama criticises e-levy

The Electronic Transactions Levy has been featured in campaign promises by leading candidates ahead of the December elections.

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YEN.com.gh reported that National Democratic Congress flagbearer John Mahama criticised the levy for not meeting its targets.

Speaking at a town hall meeting with some youth on July 12, 2024, the former President of Ghana reiterated a pledge to scrap the levy.

Mahama's main rival, New Patriotic Party flagbearer, Dr Mahamudu Bawumia, also promised to abolish the Electronic Transfer Levy.

Proofread by Bruce Douglas, senior copy editor at YEN.com.gh

Source: YEN.com.gh