The Head of Compliance, Domestic Tax Revenue Unit at the Ghana Revenue Authority (GRA), Victor Yao Akogo, has revealed that e-levy is not applicable to electronic transfer between accounts owned by the same person.

Making some clarifications on the yet-to-be-implemented Electronic Transfer Levy (E-Levy), Mr Akogo indicated that this is because the GhanaCard contains all the information and identity of the person and it is linked to his or her accounts. This, he explained, averts the situation where the person will be taxed.

“We need to state clear that the following transaction will not be covered by the e-levy. A cumulative transfer of GHC100 per a day, made by the same person, e-levy is not applicable. A transfer between accounts owned by the same person; I have a Fidelity account and I transfer money to my GCB account, I am doing a transfer; e-levy will not apply. If I transfer to my Ecobank account, my Prudential bank account, CBG account, e-levy will not apply because it is the same person who owns the account and this GhanaCard has shown its clear identity from all the various banks that he is the same person. So, e-levy will not apply”.
Victor Yao Akogo

Mr Akogo emphasized that the e-levy will not equally apply when “payments are made for taxes”. He noted that when one is paying for “taxes, fees [and] charges”, using the Ghana.gov platform or any government designated system, the levy is not applicable.

“Then we also say that transfer between principal, master agents and agents accounts; e-levy will not apply. Then finally, we talked about e-levy will not apply when there is electronic clearing of cheques. Finally, specified merchant payments also, e-levy will not be applied. So, these are the category of transactions of persons that e-levy will not apply to them”.
Victor Yao Akogo

Qualifying for an exemption

Subsequently, Mr Akogo urged citizens to ensure all their accounts have been linked to the National Identification Card (GhanaCard) to enjoy some exemptions. He expressed that there is the need for one’s GhanaCard to be linked to all his accounts so that it will be the “unique identifier” of him, in order for him to “enjoy the exemption”.

“We have a unique identifier which is the GhanaCard and that is what we are going to use. There are some people who have used their passport to register their account, we are saying that for you to qualify for the exemption, there is the need for you to let your GhanaCard be known in all your accounts. So that, your GhanaCard will be the unique identifier of you everywhere, so that you can enjoy the exemption.
Victor Yao Akogo

Mr Akogo explained that if one’s name is different from what is on the GhanaCard, he does not qualify for the exemption.

On his part, a Principal Revenue Officer and Head of the Project Management Unit at the Authority, Isaac Kobina Amoako, indicated that workers who receive their salaries through mobile money platforms may have to part with portion of their money as it is expected to be affected by the E-Levy.

He opined that when salaries are paid from their bank accounts onto mobile money platforms, the 1.50% fee will be deducted into the government coffers. Mr Amoako explained that the current framework created by the law does not distinguish a corporate mobile money account and an individual mobile money account.

“For the banks, the disbursements from corporate accounts were not mentioned. So, it is clear that that one is exempted. But in the momo, there was no distinction between the corporate momo account and the individual momo account”.
Isaac Kobina Amoako