Mobile Money, e levy charges are levied by the Ghana Revenue Authority when customers transfer money from their Momo wallet to another mobile money wallet or other financial institution. The new e-levy charges list has been decreased from 1.50% to 1% of the value of the electronic transfers.
E Levy was introduced and approved by Parliament on 29th March 2022 and took effect on 1st May 2022. This article will explain how the E levy charges are calculated and how to avoid paying E Levy charges. The new percentage of The Electronic Transfer Levy (Amendment) Act of 2022 was put into effect. Act 1089.
What are e levy charges in Ghana?
Mobile Money E Levy Charges are electronic Transaction Levy (commonly known as Electronic Levy or E-levy), and a 1% tax applies on electronic or digital platforms.
The E-Levy is 1% of all cumulative daily transfers of more than GHS 100. For example, if a person sends GHS 50 for the first time during the day and sends another 50 (totaling GHS 100), they will not be charged.
However, Government charges E-Levy after your first 100 cedis transaction limit. You can use the E-levy calculator to calculate the E-levy charge when sending money with Vodafone Cash. The graph below gives you a conception of the charges you will pay if you use MTN or AirTelTigo.
The Below diagram illustrates the new e-levy charges list after a 0.5% reduction.
How To Avoid the E Levy Charges
To avoid paying the E-levy charge, you can use the below list of tricks to avoid paying the killer tax imposed by the Ghana Revenue Authority.
- There are no E-levy charges on Cheques.
- Spend less than GHC 100 on your receiver daily until the entire amount you intend to send evacuates. For example, if you wish to pay GHS 500 to someone, start by sending GHS 50 – 100 every day until the receiver of the GHC 500 gets his money in full.
- You can also go to a Merchant to do cashout directly from the sender or receiver.
Conclusion on e levy charges on mobile money
E-levy applies to mobile money payments, bank transfers, and unregistered merchant payments. Everyone should pay taxes to help develop the country.
