E-levy has been the hot topic in country Ghana since last year. E-levy is said to be an electronic levy or let’s say tax on electronic transfers. Just like the United States of America, tax her citizens that work online or virtually when they perform online transactions online. (mostly bank transactions).
But hey, Ghana is not United States of America, and we are not enjoying that kind of quality standard of living they are doing there. This has caused a lot of rants all over the place by the citizens.
The main purpose of this guide is to look into the newly passed e-levy law, and to also enlighten our readers on some stuff about it. With a guide on how to bypass this charges anytime you want to make an electronic transaction.
Contents
- 1 Facts To Know About E-levy Charges On Mobile Money & Other E-transactions
- 2 Current Charges / New Charges on Mobile Money Transactions
- 3 Diagram Showing the E-levy New Charges on Momo Transactions
- 4 List Of Transactions That E-Levy Will Not Cover
- 5 How To Bypass Government’s 1.75% Charge On E-transactions
Facts To Know About E-levy Charges On Mobile Money & Other E-transactions
1. According to sources, E-levy is said to commerce on 1st May 2022
2. All electronic transfers on platforms like MTN mobile money, Vodafone Cash, Tigo Cash etc will be charged 1.75% from the total amount that’s being transferred. As well as the old charges (1%) which is by the network providers such as MTN, Vodafone etc… will also be charged.
3. Also, take not that the 1.75% tax will be deducted from transfers that are above GHS 100.00. This means the old charges stands if you send money equivalent to GHS 100 cedis or less.
And with this, after transferring 100 cedis any transfer made in addition that particular day will be affected by this e-levy charges. This simply means, this e-levy charges with be effective if you send more than 100 cedis from your account in a day.
So with this if you are sending 1,000 you’ll have to send 100 cedis daily for like 10 days. Which in someway will be stressful and also will be more than what you’ll be charged if allowed to deduct the e-levy tax from it.
Below, we have curated some tips and tricks in which you can bypass this e-levy tax easily and legitimately…
Current Charges / New Charges on Mobile Money Transactions
Currently, telecoms that render these platforms for e-transactions charges 1% of the amount to be transferred. And with the current charges, it’s sometimes stable or let’s say low.
For example, when you send or transfer 50 cedis you’ll be charged 0.50pesewas.
New Charges on Mobile Money Transactions;
As mentioned earlier, from May 1st, the new charges on e-transactions will be 1.75%. This means;
i. 1.75% tax will be deducted from transfers of one mobile money account to another mobile money account on the same (EMI) (e.g., Vodafone to Vodafone)
ii. 1.75% tax will be deducted from transfers of one mobile money account to another mobile money account on a different or another EMI. (e.g., Vodafone to MTN)
ii. 1.75% will also be deducted from mobile banking transactions. This means when one transfers money from his/her bank account to any money account and vice versa…
iii. Bank transfers on a digital platform or application originate from a bank account belonging to an individual to another individual.
Diagram Showing the E-levy New Charges on Momo Transactions
List Of Transactions That E-Levy Will Not Cover
Below are some of the transactions that won’t be charged or E-levy policy does not cover. Credit: myjoyonline.com
- Transfers that are below GHC 100.00 just as mentioned earlier in the intro.
- Transfers for the payment of taxes, fees, and charges on the Ghana government platform
- Transfers between accounts owned by the same person
- Transfers between principal master-agent and agent’s accounts.
- Electronic clearing of Checks
- Payments to specified merchants that is payment to commercial establishments registered with Ghana revenue Authority (GRA) for income tax and VAT purpose.
How To Bypass Government’s 1.75% Charge On E-transactions
Kindly follow the below tips or steps to skip or bypass the 1.75% E-levy tax on electronic transfers.
Let’s say for example, you are willing to send GHC 300.00 to your loved one through mobile money or any e-transaction medium, you will be firstly charged 1% that’s the old telecom charges which we all know.
And then later, you will be charged 1.75% which is the government’s E-levy. Which is Ghc 5.25, this means sending GHS 300.00 you will be charged Ghc 5.25… Do this instead,
i. Let’s say you’re sending the GHC 300.00 to your mother. To bypass the e-levy charges, give her your ID number and ask here to go to the nearest vendor.
Let them issue let you issue “cashout” on your phone and then type in your momo pin on your phone to confirm cash out. With this procedure, you will be charged only GHC 3.00
ii. You can also decide to send 100 cedis or below anytime you want to send money. If it’s big money, let’s say GHC1,000, then stick to the first procedure stated. (let them issue cashout on your phone number)
iii. Lastly, if it’s a huge amount, you can also decide to ask for the person’s bank account number then go to the bank and cash out your funds by check. Afterwards, you then deposit the funds into the recipient’s account to avoid the charges.
To conclude,
Above is some of the vital information we think you need to know about the newly pass tax law popularly known as E-levy which was passed on 29th March 2022. The very day, Black stars of Ghana qualified for the upcoming world cup in Doha, Qatar.
We touched on new and popular search queries that according to Google trends and suggestions many people ask about. (The new charges and how they are effective)
Others also ask for some smart tips and tricks that’s going to help them escape this tax thing anytime they want to perform some transactions. (This article got you covered)
Follow bronze-review for more tips and tricks as well as content in the digital marketing and tech domain. Drop your comments or suggestions if you have any, let’s all get interactive.
DISCLAIMER: We are not giving a 100% assurance that this procedure is going to work for everybody. We won’t be responsible in case of any financial loss. Also, the info on this page is not from a certified financial backer. (Check our Disclaimer and term & conditions for more)
Also, take note that, this is a neutral article or guide, that’s purposely curated to enlighten our readers willing to know more about the E-levy and how to go about it.
Nonetheless, just as researches take place, information on this page was structured and curated from other sources such as websites, public release and announcements. Therefore, we stand to be corrected if we are wrong at anywhere.
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Great info