The Ghanaian government raised approximately GH₵ 810.5 million from the Electronic Transactions Levy (E-levy) during the first half of 2024. This amount, despite falling short by GH₵ 87.9 million (9.8%) of the half-year target of GH₵ 898.4 million, marks the highest half-year revenue generated from the levy since its introduction in 2022.
To put this in perspective, the GH₵ 810.5 million collected is significantly higher than the GH₵ 643.35 million gathered during the eight months of the levy’s implementation in 2022 and represents nearly 70% of the GH₵ 1.19 billion collected in 2023. Initially, the levy was set at a 1.5% tax on all electronic transactions, with a daily free limit of GH₵ 100 and certain exemptions. However, due to underperformance in revenue generation, the rate was reduced to 1% in 2023, and the daily limit was removed.
Despite an initial drop in mobile money transactions following the levy’s introduction, recent data from the Bank of Ghana indicates that transaction volumes have not only rebounded but have also grown. The sector is now recording monthly transactions amounting to GH₵ 200 billion.
The E-levy has become a significant topic in the political discourse, with presidential candidates from the two leading parties promising to abolish it if elected. Nevertheless, the government expects the levy to contribute approximately 0.3% of Ghana’s GDP in 2024, similar to the controversial COVID-19 health levy introduced in 2021. By the end of the year, the government aims to raise GH₵ 2.1 billion from the E-levy.
Source:ceditalk.com