E-Levy: SEC, MoF considering exempting investment transactions

The Securities and Exchange Commission (SEC) has announced that it is currently engaged with the Ministry of Finance to examine the possibility of exemption investment transactions from the E-Levy regime.

This was contained in a communique from the capital market watchdog, following the implementation of the law by the Ghana Revenue Authority (GRA), beginning May 1, 2022.

“The Securities and Exchange Commission wishes to inform all capital market operators and the investing community that, following the commencement of the Electronic Transfer Levy (E-Levy) the SEC is currently working with the Ministry of Finance regarding the potential exemption of investment transactions from the E-Levy,” the statement read in part.

This comes as both parties acknowledge the increasing role that technology, particularly, mobile money is playing in the wider financial inclusion drive, as well as the growth of the capital market.

In the Capital Market Master Plan a document that highlights a 10-year road map for the development of the local market the regulator said: “As adoption of mobile money exceeds the use of the banking sector due to its inclusive nature, it is critical for the capital markets to leverage mobile technology to increase distribution and information dissemination.”

The SEC, however, stated that until the conclusion of deliberations, all market participants are to strictly comply with the regulatory regime that is presently in force.

“The SEC notes that until such exemptions are granted, capital market operators shall strictly adhere to guidelines issued by the GRA regarding the implementation of the E-Levy.”