The government, as part of strategies to widen the country’s tax net, has announced an Electronic Transaction Levy.

It will be a 1.75 percent charge on all electronic transactions.

This fee, according to the Finance Minister, Ken Ofori-Atta, is to enhance financial inclusion and protect the vulnerable.

Transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances will have the levy imposed on them and will be borne by the sender.

“After considerable deliberations, the government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the “Electronic Transaction Levy or E-Levy”, Ken Ofori-Atta said on Wednesday, during the presentation of the 2020 Budget in parliament.

However, the levy will be waived for transactions that amount to GHS 100 or less in a day or approximately GHS 3,000 per month.

The government says portions of revenue collected from the levy will be used to support entrepreneurship, youth employment, cybersecurity, digital, and road infrastructure among others.