No More E-Levy, effective immediately –GRA orders compliance

The Ghana Revenue Authority (GRA) has officially announced the immediate abolition of the Electronic Transfer Levy (E-Levy) following the President’s assent to the Electronic Transfer Levy Act, 2022 (Act 1075) and its Amendment Act, 2022 (Act 1089). The announcement, effective from midnight on April 2, 2025, mandates all financial institutions and payment platforms to cease charging the controversial 1% levy on electronic transactions.

Immediate cessation of E-Levy charges

As part of the directive issued by the Commissioner of the Domestic Tax Revenue Division, Edward Apenteng Gyamerah, all entities responsible for levying the charge have been instructed to reconfigure their systems to eliminate the E-Levy on all transactions effective immediately. The GRA’s Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically enforce the “no charge” policy from midnight.

The directive also includes a clear warning that any financial institution or payment platform that continues to apply the E-Levy, or fails to refund deductions made post-April 2, will face sanctions under the law. The GRA is firm in its stance that all Charging Entities must swiftly comply with the changes, ensuring a smooth transition for consumers.

Refunds for deductions beyond April 2, 2025

A key component of the GRA’s directive is the immediate processing of refunds to customers who were charged the E-Levy beyond today’s date. Financial institutions and mobile money operators must prioritize these refunds and document the process properly. A detailed report of all refunds processed must be submitted to the GRA for oversight and compliance checks.

The GRA has also emphasized the need for an expedited refund process, underlining the importance of customers receiving their due refunds without unnecessary delays. These actions are aimed at restoring consumer confidence and reducing the adverse impact the levy has had on mobile money transactions and digital payments.

Accountability for pre-abolition E-Levy collections

While the E-Levy has been abolished, the GRA insists that all institutions must account for and remit any E-Levy collected from transactions that occurred before April 2, 2025. Financial entities are required to file and pay outstanding levies in accordance with the law. The GRA has made it clear that non-compliance will lead to legal action and penalties.

In addition, the GRA will be conducting routine compliance checks to ensure that all institutions adhere strictly to the directive. Charging Entities are expected to maintain electronic transfer records for at least six years as mandated by the Revenue Administration Act, 2016 (Act 915), to allow for proper auditing.

Implications for Ghana’s digital economy

The abolition of the E-Levy is seen as a major step towards rejuvenating the mobile money sector and encouraging greater financial inclusion. The levy had previously been criticized for stalling growth in mobile money transactions and discouraging digital payments across the country. Economic analysts have indicated that the move to eliminate the levy will help boost Ghana’s digital economy and enhance access to financial services.

With the E-Levy now a thing of the past, Ghanaians can expect to make electronic transfers without the burden of additional costs, promoting a more inclusive and efficient financial environment. However, the GRA has reiterated that strict compliance with the new directive is non-negotiable. The authority has made it clear that any institution found failing to comply will be penalized to the fullest extent of the law.

The path forward

As Ghana embarks on this new phase without the E-Levy, the GRA’s continued oversight will be crucial in ensuring that financial institutions adhere to the new regulations. With the abolition now in effect, the focus shifts to fostering greater trust in digital financial services, while also promoting the efficient management of refunds and financial accountability.

The GRA’s efforts to implement regular compliance checks and maintain transparency are seen as essential for securing the future of Ghana’s rapidly evolving digital economy.