GhArticles.com GhArticles publishes Latest News, Politics, Education, Health Related Issues
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.
Experts say Ghanaians must use the option of paying through the Ghana.gov platform since this option is exempt from E-Levy charges.
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.
So to avoid being charged E-Levy on your transactions, first make sure that the supermarket/shop has a merchant shortcode registered to the GRA. You have to determine if the vendor is registered with the GRA before initiating the transaction.
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.
We Will Love You To Join Our Over 200k Members Instagram Family With Just One Click @gharticles
Source: GhArticles.com
