'No more E-Levy, effective immediately' - GRA orders compliance with tax abolition

The Ghana Revenue Authority (GRA) has abolished the 1% Electronic Transfer Levy (E-Levy).

This decision follows the President's approval of the Electronic Transfer Levy Act, 2022. The amendment was also approved today.

Starting at midnight on April 2, 2025, all financial institutions must stop applying the levy. They must also process refunds for any deductions made after this date.

Edward Apenteng Gyamerah, Commissioner of the Domestic Tax Revenue Division, issued this directive. All Charging Entities must update their systems to show “no charge” on transactions.

The GRA’s Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically reflect a ‘no charge’ from midnight.

Entities that continue to apply the levy or do not refund customers will face penalties under the law.

Financial institutions and mobile money operators must start immediate refunds for any E-Levy charges after April 2.

“Charging Entities must process refunds for any deducted E-Levy amounts effective today,” stated the GRA. They should create a quick refund process and keep records of all refunds.

All Charging Entities are required to report detailed refund information to the GRA.

While the levy is abolished going forward, institutions must account for any outstanding E-Levy collected before April 2.

“Charging Entities need to file and pay all outstanding E-Levy charged before April 2,” warned the directive. Non-compliance will lead to legal action and penalties under Ghana’s tax laws.

To ensure compliance, the GRA will conduct regular checks on financial institutions and payment platforms.

“Failure to comply with these directives is an offence,” cautioned the statement. Sanctions will be imposed as prescribed by law.

All Charging Entities must keep electronic transfer records for at least six years as required by Section 27(3) of the Revenue Administration Act, 2016.

The removal of this criticized E-Levy aims to revive mobile money transactions and boost digital payments in Ghana.

Economic analysts believe abolishing the levy will enhance financial inclusion and accelerate Ghana’s digital economy.

With this new policy in place, Ghanaians can now transfer money electronically without extra charges. However, the GRA insists that financial institutions must fully comply with these new rules or face consequences.