E-Levy: Four Popular Misconceptions About The New 1.5% Electronic Transactions Tax

• The 1.5% E-Levy will hit hard at the incomes of Ghanaians but the misconceptions about the tax is worsening matters
• The misconception has compelled some Ghanaians to even delete their mobile money accounts so they never have to pay
• A post by governing NPP MP for Akim Swedru, Kennedy Nyarko Osei, has compelled YEN.com.gh to compile a list of some of the misconceptions to guide the public

Apprehension about the 1.5% Electronic Transactions Levy (E-Levy) and a lack of well-coordinated communication on the tax have given rise to some popular misconceptions.

Some of the misconceptions have even compelled some people to delete their mobile money accounts.

Recently, a skit by a Ghanaian comedian caused an uproar when it suggested that the new tax would be charged huge cashouts.

Read also

I won’t pay E-levy, it doesn’t make sense - Afia Schwar fearlessly explains in new video

YEN.com.gh compiles four popular misconceptions about the tax to guide the public. They are informed by a post by the governing NPP MP for Akim Swedru, Kennedy Nyarko Osei.

1. Only the person transferring or sending the money (through mobile money or other electronic means) would be charged 1.5% of the transaction volume.

2. Anyone receiving mobile money or other electronic cash will not be charged E-Levy. Cashouts are totally exempt.

So, if you send money to your mother or any relations anywhere, the sender would be required to pay the 1.5% levy.

The person receiving the money will not pay anything – other than the 0.75% charged by the payment platform – when withdrawing the money.

3. Transferring money from your bank account to your momo wallet and from your momo wallet to your bank account is free and does not attract E-Levy charges.

Read also

Six smart tips on using exemptions in the 1.5% E-Levy law and minimise its impact

4. When you are also paying any money or Bills to a registered VAT company, institution, or merchant, you will not be charged any E-Levy.

For example, paying for your electricity bills, water bills, passport application fees, DSTV bills, FDA or GSA fees etc., will not attract the 1.5% E-Levy.

E-Levy: Tax Analyst Outlines 6 Exemptions In New Law Available To Ghanaians

While many are worried about the impact of the 1.5% E-Levy on their incomes, there are six ways to legally minimise the risk of paying the tax and reduce its impact.

The implementation of the much-talked-about E-Levy starts on May 1, 2022, but YEN.com.gh reached out to a tax expert for some brilliant ideas on how to navigate the choppy waters of the unpopular Electronic Transactions Levy.

These ideas to minimise the risk of paying the E-Levy use exemptions spelled out under the law and transactions that it does not cover.

Source: YEN.com.gh