The Ghana Revenue Authority (GRA) has ordered all financial institutions and payment platforms to immediately halt the application of the 1% Electronic Transfer Levy (E-Levy), following its official repeal.

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This directive comes after President Nana Akufo-Addo signed into law the Electronic Transfer Levy Act, 2022 (Act 1075) and its Amendment Act, 2022 (Act 1089), effectively scrapping the controversial tax.

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Per the new directive, which takes effect from midnight on April 2, 2025, all entities responsible for charging the levy must ensure their systems are reconfigured to reflect the change. Edward Apenteng Gyamerah, Commissioner of the Domestic Tax Revenue Division, issued the notice on behalf of the Commissioner-General, making it clear that failure to comply will attract sanctions.

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“The GRA Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically return a ‘no charge’ on all transactions posted to it by entities from midnight,” the directive stated.

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A key component of the new policy is the requirement for financial institutions and mobile money operators to initiate refunds for customers who may have been charged beyond the official abolition date.

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“Charging Entities must immediately process refunds for any E-Levy amounts deducted from customers effective today, April 2, 2025.

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Entities are to establish an expedited refund process and maintain proper documentation of all refunds processed,” the statement outlined.

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Additionally, all Charging Entities are required to submit comprehensive reports on refunds issued to the GRA to ensure transparency.

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While the E-Levy is no longer in effect, the GRA has emphasized that all institutions must account for levy collections made before April 2.

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“Charging Entities are to take the necessary steps to file and pay all outstanding E-Levy charged and collected on all transactions that occurred before April 2, 2025,” the directive warned.

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Failure to do so will result in legal consequences and penalties under Ghana’s tax regulations.

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Compliance Measures and Future Implications

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To enforce compliance, the GRA has announced that it will conduct regular inspections across all financial institutions and payment platforms.

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“Failure to comply with the above directives constitutes an offence, and sanctions will be imposed as prescribed by law,” the statement cautioned.

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Moreover, institutions must retain electronic transfer records for at least six years, in line with Section 27(3) of the Revenue Administration Act, 2016 (Act 915).

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The abolition of the E-Levy is expected to reinvigorate digital transactions in Ghana, particularly mobile money transfers, which saw a decline when the tax was first introduced. Analysts believe the decision will promote financial inclusion and drive digital payments, aligning with Ghana’s broader economic strategy.

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With this directive now in effect, electronic money transfers can proceed without additional deductions, while the GRA remains vigilant in ensuring full compliance.

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