The Finance Minister, Ken Ofori-Atta, has announced that the government will reduce the E-Levy from the current 1.5% to 1%.
He said the daily threshold will also be removed.
Presenting the 2023 Budget Statement in Parliament on Thursday (24 November 2022), Ofori-Atta made the headline announcement: “Review the E-Levy Act and, more specifically, reduce the headline rate from 1.5% to 1% of the transaction value as well as the removal of the daily threshold.”
Some experts had recently called on the government to reduce the E-Levy rate.
IMANI survey
A survey conducted by the IMANI Centre for Policy and Education, in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), revealed that about eight in ten or 83% of respondents said that the volume of their transactions has changed since the implementation of the E-Levy in May 2022.
The research, which interviewed 1,677 respondents across the country, was aimed at determining the impact of the E-levy on Ghanaians and the coping mechanisms they had adopted since its passage in May this year.
Of the 1,677 respondents, roughly 47% said that they had reduced the number of mobile money transactions by between roughly 51% and 100%.
“Our findings suggest that the official 24% attrition rate, which government estimates for the first three to six months following the introduction of the E-Levy, is likely to be much higher. These findings imply that the forecast GHC4.5 billion E-Levy revenue target for 2022 is unlikely to be attained, given the strong consumer backlash, and people finding alternative means of undertaking financial transactions,” the survey said.
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