5 countries that charge e-levy

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5 countries that charge e-levy
countries that charge e-levy

5 countries that charge e-levy

E-levy is also known as Electronic Transaction Levy is a tax that is imposed on transactions made on digital platforms.

BENEFITS OF CHARGING E LEVY

Some of the benefits of charging e levy include:

  • A prompt acknowledgment of your tax has been paid
  • Also, it has better accuracy as errors will be minimized as compared to errors made by humans when entering the data.
  • It offers you convenience as you don’t have to move about to pay your tax.
  • Last but not least, you get prompt notification of your filing once a transaction is complete.

COUNTRIES THAT CHARGE E LEVY

1 . GHANA

On Tuesday,  29th March 2022, Ghana’s parliament approved the Electronic Transfer Bill(E-levy)2021 under a certificate of urgency. The e-levy bill will accrue a revenue of GHC 6.9 billion to augment the government’s revenue.

The bill imposes a 1.5 percent on electronic money transfers. The revenue accrued from the e-levy will support some of the government’s initiatives such as; providing employment to the youth, entrepreneurship, and construction and maintenance of roads among many others.

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The transactions that are being taxed include:

  • Mobile Money Transfers between accounts on the same Electronic Money Issuer (EMI)
  • Mobile Money transfers from an account on one EMI to a recipient on another EMI
  • Transfers from bank accounts to mobile money accounts
  • Bank transfers on a digital platform or application originate from a bank account belonging to an individual, to another individual.

2 . UK

The UK calls it e levy the Digital Service Tax. It is a tax that is imposed on businesses that offer social media services, search engines, or an online marketplace to UK users. These businesses will pay a 2% tax on their revenue if they earn is more than £500 million and more than £25 million from users in the UK.

Nonetheless, there are some exemptions to this tax, some of them include; Where one of the parties to a transaction on an online marketplace is a UK user, all of the revenues from that particular transaction will be treated as derived from UK users. The digital service tax is paid on an annual basis.

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3 . NIGERIA

The Nigerian government introduced the electronic tax system to increase the revenue generated by the country thereby increasing the country’s economic growth.

4 . ZIMBABWE

In 2019, Zimbabwe imposed a 2% intermediated money transfer tax (IMTT). The IMTT applies to mobile money, electronic, and bank transfer transactions and this has accounted for all the corporate taxes received by the government.

5 . UGANDA

In 2018, Uganda introduced taxation on its mobile money and that led many to migrate to the banks.

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