How E Levy Charges are Deducted in Ghana

In this article, you will get to understand How E-Levy Charges are calculated and also deducted on mobile money transactions in Ghana.

About E Levy Deduction in Ghana

The Electronic Levy (E-Levy) has been passed and has currently started. With this, Electronic transactions such as mobile money transfers, bank to bank transfers, bank to mobile money transfers, and online payment transactions with payment platforms such as Visa Card, Master Card, and PayPal, among others, are subject to a 1.5 percent tax.

The purpose of this article is to clarify certain details in the heads of many who might find it difficult to understand some details related to the newly implemented tax especially with regards to how the tax is deducted on certain transactions.

Before we know how the charges are deducted, it is recommended we know the types of transactions which fall under the E levy and the ones which do not fall under it.

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What transactions fall under the E-Levy?

How are E Levy Charges Deducted in Ghana?

• The Ghana Revenue Authority (GRA) is the body responsible for collecting and accounting for the Levy through mobile money providers, banks, and other financial institutions.
• The E-Levy tax is charged when a person transfers money electronically. This way, the charging entity will add the Levy to the transfer amount and charge the person’s wallet or bank account.
• The rate for the E-Levy is 1.50% of the value of the electronic transfer
• Telecommunications Providers also charge 0.75% for their services on transactions

Why are the E Levy Charges Confusing at times?

Due to the GHC 100 waiver of the E-Levy tax in transactions, certain things have become quite confusing to certain people to some extent where it has to be clarified.

Understand How the Charges on E-Levy Transactions are Deducted 

Few days after the implementation of the tax, the following has been noticed:

1. E-Levy Charges before sending GHC 100
2. E-Levy Charges after sending GHC 100

E-Levy Charges before sending GHC 100

The charges shown in the image above explains how the tax will be deducted from transactions when the sender has not yet sent money up to GHC 100 in a day.

For example:

Kofi transferring money from his Mobile Money wallet to Ama’s Mobile Money wallet when he has not yet sent money to anyone yet that day.

Sending GHȻ 100 or below

• If Kofi decides to send GHȻ 50, he will not be paying any e-levy tax. As well he will not pay telco charges, so he sends the money free of charge.
• If he decides to send GHȻ 100, he will he will not be paying any e-levy tax. As well he will not pay telco charges, so he sends the money free of charge.

Sending above GHȻ 100

• If kofi decides to send GHȻ 150, he will then be taxed for only GHȻ 50 and not GHȻ 150 because GHȻ 100 tax will be waived. He will also be charged 0.75% on the GHȻ 150 as telco charge. In total, he is charged GHȻ 0.75 for tax and GHȻ  1.33 as telco charge making a total of GHȻ 1.88
• If decides to send GHȻ 300, he will then be taxed for only GHȻ 200 and not GHȻ 300 because GHȻ 100 will be waived. He will also be charged 0.75% on the GHȻ 300 as telco charge. In total, he is charged GHȻ 3.00 for tax and GHȻ  2.25 as telco charge making a total of GHȻ 5.25

E-Levy Charges after sending GHC 100

The charges shown in the image above explains how the tax will be deducted from transactions when the sender has already sent money up to GHC 100 in a day.

For Example:

Kofi, after transferring GHȻ 100 from his Mobile Money wallet to Ama’s Mobile Money wallet, he then decides to send another money to Adwoa.

• If Kofi decides to send GHȻ 50 this time, he will pay e-levy tax (1.5%) on the GHȻ 50 and also pay Telco charge (0.75%) on the GHȻ 50 as well. In total, he is charged GHȻ 0.75 for e-levy tax and GHȻ  0.38 as telco charge making a total of GHȻ 1.13 as charges on the GHȻ 50 transferred.
• If he decides to send GHȻ 100 this time, he will pay e-levy tax (1.5%) on the GHȻ 100 and also pay Telco charge (0.75%) on the GHȻ 100 as well. In total, he is charged GHȻ 1.50 for e-levy tax and GHȻ  0.75 as telco charge making a total of GHȻ 2.25 as charges on the GHȻ 100 transferred.
• If Kofi decides to send GHȻ 300 this time, he will pay e-levy tax (1.5%) on the GHȻ 300 and also pay Telco charge (0.75%) on the GHȻ 300 as well. In total, he is charged GHȻ 4.50 for e-levy tax and GHȻ  2.25 as telco charge making a total of GHȻ 6.75 as charges on the GHȻ 300 transferred.

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Conclusion:

By now, we believe you now understand how the e levy charges are calculated and deducted on the various transactions. If you found this article informative, kindly share this to help educate others. You can feel free to comment your questions for answers. Thank You for your time.