1% revised E-Levy charge kicks off today – what you need to know.
Today marks the beginning of the revised 1% E-Levy charge, a new government scheme that affects businesses in Ghana.
This new charge has caused a lot of confusion, as it applies to different businesses in different ways. In this blog post, we will look at what the E-Levy charge is, how it affects businesses, and what steps business owners need to take to ensure they are compliant with the new regulations.
What is the E-Levy?
The government of Ghana revised the 1.5 percent electronic transaction charge downward to 1 percent effective January 2023 in the Budget and Economic Policy Statement for 2023.
The E-Levy is part of the government’s commitment to become carbon neutral by 2050, with a target of reducing emissions from businesses by 80% by 2030. The money generated from the levy will be used to invest in renewable energy sources such as wind, solar and hydro power, as well as energy efficiency measures.
It is estimated that the levy will raise over $2 billion a year for green energy projects and could help create over 30,000 jobs. This will also help reduce businesses’ energy bills in the long run, as the money raised from the levy will help to fund new renewable energy sources which will eventually be cheaper than fossil fuel sources.
Just before the E-levy went into effect in May 2022, according to the Summary of Economic and Financial data (May 2022), the number of active mobile money customers fell from 18.9 million the previous month to 18.6 million in April.
How will the revised charge affect businesses?
The revised 1% E-Levy charge comes into effect today, and it’s important for businesses to understand how the new rate will affect them.
The revenue raised from the levy will be invested in clean energy projects and also to create jobs.
Under the new charge, businesses that make transactions more than Ghc 100 will be required to pay the levy.
The amount of money that triggers the charge depends on the type of business and its size. For example, small businesses who send less amount of money per day will be exempt, while larger businesses who send money more than hundred Ghana cedis per day or more will have to pay the levy.
Businesses that are already paying the E-Levy will now see a decrease in their bills, as the revised charge is lower than the previous rate. The lower levy means more businesses will be exempt from having to pay it, but those that are eligible to pay will likely see an increase in their bills.
It is important for businesses to check their money usage and find out if they are liable for the levy. If a business does not pay the levy when it is due, they may be subject to penalties and fines.
Businesses should also keep up to date with any changes in policy regarding the levy, as this can affect their sales.
Overall, the revised 1% E-Levy charge should help to reduce the cost of bills for businesses in Ghana. By investing in clean projects, it will also help to reduce emissions and move us towards a more sustainable future.
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