GRA orders immediate compliance as government scraps 1% E-Levy

The Ghana Revenue Authority (GRA) has officially declared the end of the 1% Electronic Transfer Levy (E-Levy), marking a significant shift in the country's digital finance landscape.

This change comes after the President signed into law both the Electronic Transfer Levy Act, 2022 (Act 1075) and its amendment (Act 1089), paving the way for the immediate cancellation of the levy.

Effective from 12:00 AM on April 2, 2025, all banks, fintech companies, and mobile money operators are required to stop charging the E-Levy. Institutions are also expected to promptly refund any deductions made on or after this date.

In a directive issued by Edward Apenteng Gyamerah, the Commissioner for the Domestic Tax Revenue Division, the GRA instructed all service providers to update their systems to reflect the removal of the levy. The authority’s Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically mark such transactions as exempt from charges moving forward.

The GRA has warned that institutions which continue to apply the levy or delay refunds to affected customers will face penalties in line with the law.

All service providers are to establish fast-tracked refund mechanisms and keep comprehensive records of transactions and refunds processed. Additionally, a detailed report of these refunds must be submitted to the GRA for auditing purposes.

While the levy no longer applies to transactions from April 2 onward, financial entities are still responsible for reporting and paying any E-Levy collected before that date.

Failure to settle outstanding obligations or comply with the new directive may result in legal action, the GRA cautioned. To enforce the directive, the GRA will carry out regular audits of all relevant institutions.

Charging Entities are also reminded to retain electronic transfer records for a minimum of six years, as required by the Revenue Administration Act, 2016 (Act 915).

The removal of the unpopular levy is widely seen as a move to revive digital financial activity, particularly mobile money usage, which took a hit following the tax’s introduction. Economists believe this decision will promote broader access to digital financial services and support the country’s digital transformation goals.

With the E-Levy now abolished, Ghanaians can enjoy seamless electronic transactions free from extra charges—provided institutions adhere strictly to the updated rules.