e-levy

What You Should Know About Ghana’s E-Levy

 

A recent mandate by the Ghanaian government requires all registered businesses in the country to submit their tax payments electronically, using web-based services provided by the Inland Revenue Service (IRS). This new policy, called e-levy, has proven to be very useful in simplifying tax compliance, as well as in reducing the cost of submitting taxes and receiving refunds by as much as 90%. What follows are some answers to common questions about e-levy in Ghana.

 

Why Ghana Must Have An E-Levy

To begin with, I guess you would want to know why should Ghana have an e-levy. Well, as a country we have over 600 taxes on imports and exports as well as on domestic products. This can be attributed to government’s inability to cover its expenditure without resorting to new levies but levying taxes is not a sustainable way of raising revenue for a number of reasons such as

 

How Will The Tax Affect You?

E-levy is a necessary evil—Economists

The tax will affect you if you’re in one of three categories: business users, residential consumers, and public institutions. Business users are required to pay GHc5 per gigabyte used per month. Residential consumers are those who access internet service from a provider like Mtn, Airteltigo or vodafone for example. They will be required to pay at GHc2 per gigabyte consumed in a day. Public institutions are government agencies that use internet services like schools, hospitals and so on. They will have to pay GHc10 per gigabyte consumed per month.

 

Is The Levy Easy To Pay?

No, not really. The government announced last year that it would begin collecting taxes through mobile phone operators, making them liable for collecting VAT on all their services and distributing it to tax authorities. To make sure that people don’t miss payments, however, mobile companies will have to remind them when a payment is due. They will also send SMS notifications when bills are about to expire.

 

Why Will It Ensure Accountability?

At its core, e-levy is a tax collection system that tracks revenue and expenditure of government entities electronically. The major benefits of e-levy include improved revenue generation, expenditure monitoring, and transparency in funding activities across all levels of government. Above all, though, e-levy will ensure accountability in governance by providing citizens with information on how their money is being spent. There’s no way to hide when everyone has full access to information on tax payments.

 

How Can I Check My Payment Status?

The GHS is working to improve its e-payment platform, but in the meantime, if you need to know how much your total payment is, simply log into your KwesiPay account and click on Receive Payments. From there, you can easily check your payment status or withdraw all money from a transaction by clicking on Transactions. You will be prompted to input a username and password for access; both are sent in an email as soon as you register for KwesiPay.

 

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