Ghana Chamber of Telecommunications (GCT) has urged the government to reduce the Electronic Transfer Levy (E-levy) from 1% to 0.5% while simultaneously introducing a 0.5% levy on cash-outs.
This recommendation is made to align the policy with Ghana’s digital-first strategy, emphasising the need for a balanced approach to support the country’s digital initiatives.
“Our recommendation to the Ministry of Finance is to consider reducing the levy on transfers to 0.5% and introducing a 0.5% levy on cash-outs, among other proposals,” the Chamber added in a statement.
Despite facing initial challenges, the Electronic Transfer Levy (E-levy) has proven to be a significant revenue generator for the government, amassing GH¢482.8 million out of the targeted GH¢6.9 billion.
The Ghana Chamber of Telecommunications (GCT) advocates for further adjustments to enhance digital payments and align with the government’s digital transformation objectives.
The GCT’s 2022 Mobile Industry Transparency Initiative report, unveiled on November 21, 2023, in Accra, sheds light on the telecommunications industry’s substantial contributions to Ghana’s economy.
According to Ing. Dr. Kenneth Ashigbey, the CEO of the GCT, the industry’s tax and payment contributions exceeded GH¢6 billion in 2022, marking a 50% increase from GH¢4 billion in 2021.
This financial input accounts for approximately 8.02% of the government’s 2022 tax revenue, as outlined in the Ghana Revenue Authority’s 2022 annual report.
The report further reveals that the telecommunications industry directly employs over 2,600 individuals and indirectly supports the creation of more than 1.2 million jobs, including over 505,000 active Mobile Money Agents.
These findings underscore the sector’s vital role in Ghana’s development and economic landscape.