The Securities and Exchange Commission of Ghana (SEC) has disclosed that it is currently working with the Ministry of Finance regarding the potential exemption of investment transactions from the E-Levy.

In a statement issued by SEC, the Commission underscored its fundamental roles and acknowledged the increasing role that technology, particularly, mobile money is playing in the wider financial inclusion drive, as well as the growth of the capital market.

“The Securities and Exchange Commission (hereinafter referred to as the SEC) is the statutory body mandated by the Securities Industry Act 2016 (Act 929) to promote the orderly growth and development of an efficient, fair, and transparent securities market in which investors and the integrity of the market are protected.

“The Securities and Exchange Commission (SEC) wishes to inform all capital market operators and the investor community that, following the commencement of implementation of the Electronic Transfer Levy (E-Levy) Act 2022 (Act 1075) on 1st May, 2022, by the Ghana Revenue Authority (GRA), the SEC is currently working with the Ministry of Finance (MoF) regarding the potential exemption of investment transactions from the E-Levy.”
SEC

The SEC highlighted its Capital Market Master Plan– a document that highlights a 10-year road map for the development of the local market. In that document, the regulator acknowledged the importance of mobile money in the financial sector ecosystem, saying, “As adoption of mobile money exceeds the use of the banking sector due to its inclusive nature, it is critical for the capital markets to leverage mobile technology to increase distribution and information dissemination.”

GRA to Complete Second Phase of Integration Next Month

The Securities and Exchange Commission, moreover, charged the capital market to remain calm noting that by the end of next month, the Ghana Revenue Authority (GRA) would have completed the process.

“It is estimated that by the start of the second phase (1 July 2022) of the modified phased approach adopted by the GRA, Charging Entities would have completed their integration with the GRA E-Levy Management System (Common Platform), thereby facilitating the complete identification of individuals, verification of daily threshold and exemptions across the various platforms of the Charging Entities.”
SEC

The commission used the opportunity to urge its members to update their records based on its earlier directive.

“All capital market operators are therefore advised to update their customers’ investment records using their individual National Identification Card (Ghana Card) and ensure full compliance with the directive issued by the SEC in July 2020 on Trust Accounts’ opening, maintenance, and operation SEC/DIR/003/07/2022 which shall become a key ingredient in seeking potential exemptions for the market.”
SEC

That notwithstanding, the Securities and Exchange Commission of Ghana said that “Until such exemptions are granted, capital market operators shall strictly adhere to guidelines issued by the GRA regarding implementation of the E-Levy.”