E-levy will affect your payment of tithes – Sam George warns Ghanaians

The National Democratic Congress (NDC) Member of Parliament for Ningo Prampram, Sam George has disclosed that the controversial electronic levy will affect tithes.

E-levy will affect your payment of tithes – Sam George warns Ghanaians

The National Democratic Congress (NDC) Member of Parliament for Ningo Prampram, Sam George has disclosed that the controversial electronic levy will affect tithes.

He said the levy, in its current form will affect Ghanaians who will pay their tithes through electronic means.

In an interview on Joy FM, Sam George said the only such religious contributions can be omitted is when the law is repealed.

“An issue that has not been clarified is the tithe and offertories and the Zakat in the mosque. We know that we can now pay these online. Now, the exemptions that have been given has not been given to churches,” in spite of the suggestion that churches should go and register as merchants.

“A Merchant SIM must be held by a tax compliant person. Now the law says that tithes, offertories and Zakat are tax exempt. So how does a church hold a Merchant SIM and pay taxes for tithes, offertories and Zakat which are tithe exempt?” he quizzed.

The implementation of the Electronic Transaction levy (e-levy) is expected to start from May 1, 2022.

Sam George
Sam George

However, the Ghana Revenue Authority (GRA) has revealed some set of digital transactions that will not attract the 1.5% E-Levy charge.

The GRA in a media engagement opined that remittances from Ghanaians abroad, cash-in and cash-out from mobile money accounts will not be charged with E-Levy.

“Additionally, payments for utility bills and purchases of airtime will also not attract the levy provided the utility or airtime provider is registered with the GRA for income tax or VAT.

The GRA further noted that withdrawals from ATMs are also exempted from the 1.5% charge.