Parliament approval of the controversial Electronic Transaction Levy (E-Levy) has become a worry of many Ghanaians.The approval however has given the Ghana Revenue Authority (GRA) the legal jurisdiction to begin its implementation and deductions from 1st of May, 2022.
However, Mr. Fred Kwashie Awuttey, a Tax and Management Advisor has outlined six legal modes that Ghanaians can reduce risk of exposure to the controversial tax.
1. Make payments through merchant shortcode (for shops and supermarkets)
The levy does not cover payments made through merchant’s shortcode who are registered with the Ghana Revenue Authority (GRA) for purposes of paying income taxes and VAT.
“To minimise the exposure, when you go to a shop, you have to find out whether the vendor is registered with Ghana Revenue Authority before you start to initiate the transaction.”
2. Do ‘physical’ cash-in and cash-out
Mr Awuttey noted that the tax does not cover cash-out and cash-in. That is an option opened. But, with this, individuals must be guided by the dangers of carrying cash along.
3. Chase the chequebook
Mr Awuttey noted that since clearing cheques by electronic means is exempted from the tax, it provides an alternative to reduce risk of exposure
4. Make payments through merchant shortcode (for shops and supermarkets)
The levy does not cover payments made through merchant’s shortcode who are registered with the Ghana Revenue Authority (GRA) for purposes of paying income taxes and VAT.
“To minimise the exposure, when you go to a shop, you have to find out whether the vendor is registered with Ghana Revenue Authority before you start to initiate the transaction.”
5 . Pay your taxes through the Ghana.gov platform
To reduce risk of exposure to E-Levy while paying other taxes, do it through the Ghana.gov platform. The tax expert explains that that platform is exempt from charging the E-Levy.
6. Regulate the volume of electronic payments at the bank
For the purpose of making payment by the electronic platform through the bank, an individual may have to regulate the payment.
It is expected that the Minister of Finance determines the minimum threshold on the bank payment so that concerns on payment are addressed.
Source: Honestynewgh.com
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