Electronic Transaction Levy has been reduced to 1%

Electronic Transaction Levy has been reduced to 1%

As part of its efforts to realign the economy toward growth, the government raised the Value Added Tax (VAT) from 12.5% to 15%. The 2.5% increase is intended to directly help both the government’s digitalization drive and the roads industry.

The 2023 Budget Statement and Economic Policy of the Government were presented to the House of Representatives on Thursday by Finance Minister Ken Ofori-Atta. Reviewing the E-Levy Act, lowering the headline rate from 1.5% to 1% of transaction value, and eliminating the daily threshold are just a few of the numerous initiatives that will be implemented in order to reset the economy.

“Mr. Speaker, the government has often said that it wants to increase revenue collection by using technology to streamline tax administration, identify and register taxable individuals, and boost tax compliance.”

“Mr Speaker, The government is closely collaborating with all stakeholders to assess the impact of the Electronic Transfer Levy in order to decide on the next course of action, which will include revising the different exclusions, after receiving a number of ideas for its assessment. Although the daily threshold will no longer apply, the headline rate will initially be lowered to one percent (1%) of the transaction value.” Ken Ofori-Atta added.