E-Levy Removal: This Is A Welcoming News For Traders But… – GUTA Boss
Joseph Paddy, Director of Industrial Relations for the GUTA, has commended President John Dramani Mahama for cancelling the Electronic Transfer Levy, popularly referred to as E-Levy, and other taxes.
President’s Assent
On Wednesday, April 2, the President signed bills passed by Parliament cancelling all these taxes.
E-Levy was introduced in 2022 under the erstwhile New Patriotic Party administration and it imposed a 1.5%, subsequently reduced to 1%, tax on electronic transactions such as mobile money transfers, bank transfers and online payments.
The Akufo-Addo government further implemented a 10% betting tax on Sports gaming and also introduced emission tax but didn’t implement it.
GRA Directive
Following the presidential assent, the Ghana Revenue Authority (GRA) issued a directive to all charging companies to cease the collection of these taxes immediately.
“The GRA Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically return a ‘no charge’ on all transactions posted to it by entities from midnight.”
“Charging Entities must immediately process refunds for any E-Levy amounts deducted from customers effective today, April 2, 2025. Entities are to establish an expedited refund process and maintain proper documentation of all refunds processed”, the directive said.
GUTA Remarks
Commenting on this development during Peace FM’s “Kokrokoo” morning show, Joseph Paddy described the E-Levy abolition as “welcome news” to traders.
He noted that this tax removal is a major step to alleviating the plight of the business community.
“It’s a good thing and we welcome it”, he said.
However, he complained about the rates of other taxes on commodities stressing “there is no parity in our tax regime”.
He expounded that the tax components are high, explaining that the rate goes up as huge as 50 percent, therefore exerting great financial pressure on the business fraternity, especially importers and so called on government to also do something about it
“So, I’m going to cough almost about 50000 to pay duty…It’s only in this country that tax is more than the item. This is the only country where the tax element of a product is more than cost of the item”, he stated.
Joseph Paddy further suggested to government to widen the tax net to capture all players in the business community noting that “there are some people who are not captured in the tax net, hence threatening businesses that are taxed”.
Source: Ghmessenger.com
