Ghana Scraps E-Levy: 1% Charge on Electronic Transfers Abolished Effective Immediately

President Mahama signing bills to repeal e-levy, betting tax, and emissions levy

ACCRA, Ghana (April 2, 2025) – The controversial 1% levy on electronic transfers, widely known as the E-Levy, has been officially abolished in Ghana, effective today, April 2, 2025. This significant policy shift comes after President John Dramani Mahama assented to the Electronic Transfer Levy (Repeal) Bill, bringing immediate relief to users of mobile money and other electronic payment platforms.

The Ghana Revenue Authority (GRA) confirmed the development in a directive issued to all charging entities, including banks, electronic money issuers (like mobile money operators), and payment service providers. The memo, signed by Edward Apenteng Gyamerah, Commissioner for the Domestic Tax Revenue Division, mandates the immediate cessation of the 1% E-Levy charge on all applicable electronic transactions.

According to the GRA's notice (Ref. No. CG/GRA/E-LEVY/01/0425), charging entities were instructed to implement a "no charge" configuration on their systems starting from midnight on April 2nd. The GRA's own Electronic Transfer Levy Management and Assurance System (ELMAS) has also been updated to automatically reflect this change, returning a "no charge" status for transactions posted from the effective date.

For consumers, this means that transfers via mobile money, bank apps, and other digital payment platforms that previously attracted the 1% levy should no longer incur the charge. The GRA has instructed charging entities to establish an expedited process for refunding any E-Levy amounts that might have been inadvertently deducted from customers on or after April 2, 2025. Customers who believe they have been wrongly charged are advised to contact their respective service providers. Entities are required to maintain clear records of these refunds and report them to the GRA.

While the levy is abolished going forward, the GRA emphasized that charging entities must still account for and remit all E-Levy funds collected on transactions before April 2, 2025. Furthermore, to ensure effective reconciliation and compliance monitoring, these entities are required to continue posting all electronic transfer transaction data to the ELMAS platform until further notice, as stipulated by the Revenue Administration Act. Record-keeping requirements also remain, with entities obliged to maintain electronic transfer records for a minimum of six years.

The abolition of the E-Levy was part of a broader legislative action by President Mahama on Wednesday. The President also gave assent to several other key bills, including repeals of the betting tax and the emissions levy. Other significant legislation signed into law included amendments to the Value Added Tax (VAT), Income Tax, Petroleum Revenue Management, and Public Financial Management acts, alongside the Earmarked Funds Capping and Realignment Bill, the Energy Sector Levy Act, the Gold Board Bill 2025, and the Growth and Sustainability Levy Act.

GRA guidance for financial institutions following tax abolishment

The GRA has warned that failure by charging entities to comply with the directives on E-Levy cessation and reporting constitutes an offence and will attract sanctions under the law. The Authority stated it will conduct regular checks to ensure adherence.

Ghanaians seeking clarification on the E-Levy abolition and its implications can contact the GRA's E-Levy Technical Support Team.