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

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

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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

mobile money
The new tax law has suffered numerous conceptions since it was announced. Source: Instagram/@fillaboyzdotcom
Source: Instagram

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.

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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

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