The government’s introduction of the Electronic Transfer Levy (E-Levy) resulted in one million mobile money accounts becoming inactive, according to research conducted by the Institute of Statistical, Social and Economic Research (ISSER).
In July 2022, the overall number decreased from 19.1 million to 18.1 million, according to ISSER.
Additionally, it showed that between March and April 2022, there were 10 million fewer transactions overall, while the total value decreased by GH¢2.8 billion.
While the number of active accounts decreased by 100,000 by February 2023, ISSER observed that the number of agents and registered and active accounts continued to rise in January 2023.
It mentioned that, “Ghanaians immediately resorted to alternate payment systems when the E-levy was implemented. Furthermore, less than 7% of the target revenue was realized initially. Only ¢93 million out of GH¢1.4 billion was raised.”
“Interestingly, sensitivity to the tax, the announcement of the E-levy led to a growth in alternate payment systems (GHIPPS instant pay, cheques cleared, internet banking, etc).” The report stated.
The government claims that the implementation of the E-Levy is a component of their efforts to enhance domestic income mobilization.
After a number of complaints, the 1.5% E-Levy tax was reduced to 1%.
The Ghana Revenue Authority (GRA) disclosed that GH¢246.9 million was collected through the Electronic Levy, or E-Levy.
Eleven percent of the GH¢2.24 billion estimated for the year was spent on it.
By March 2023, the E-Levy had brought in GH¢861.47 million in revenue since it was put into place in May 2022.