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5 Possible Ways To Reduce Impact Of E-Levy

Ahead of the operationalisation of the controversial Electronic Transaction Levy (E-Levy) on May 1, 2022, some tax experts and analysts have outlined ways to possibly reduce the impact of this tax on Ghanaians.

Ghanaians have expressed outrage over the 1.5% E-Levy and the impact it will have on their incomes and life generally.

Some tax experts have however outlined some ideas that will help minimise the risk of paying the E-Levy.

According to the experts, while these ideas below will help one avoid the tax, it comes with the its risk as well.

1. Use the Ghana.gov platform to pay taxes 

Ghanaians are encouraged to pay their taxes through the Ghana.gov platform to reduce the impact of the E-Levy.

2. Control the volume of electronic payments at the bank 

For the purpose of making payment by the electronic platform through the bank, an individual may have to regulate the payment so as to minimise the impact of the new levy.

3. ‘Physical’ cash-in and cash-out option

The E-Levy does not cover cash-out and cash-in made at the MoMo vendor. So there is the option of going to a MoMo merchant and asking them to deposit money into a particular MoMo wallet.

When the person withdraws (cash-out), they only pay the MoMo charges, not E-Levy.

4. Use merchant shortcode in transactions of business (for shops and supermarkets) 

The E-Levy does not cover payments made through a merchant’s shortcode registered with the Ghana Revenue Authority to pay income tax and VAT.

5. Ensure your bank, MoMo account details are updated with the Ghana Card 

The E-Levy does not cover transfers between two or more accounts held by one person with a unique Ghana Card ID number.

So to minimise the impact, Ghanaians must update their bank accounts and mobile money accounts with the Ghana Card.

This way, they will not be affected by the tax when they transfer money from one account; say from their MTN wallet to their AirtelTigo wallet.

 

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Source: GhArticles.com

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