SEC working with Finance Ministry to exempt investment transactions from E-Levy

E-Levy implementation commences on May 1

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The capital markets regulator, the

Read full articleSecurities and Exchange Commission (SEC) has noted that it is working with the Finance Ministry to ensure the potential exemption of investment transactions from the E-Levy.

In a statement, SEC cautioned all capital market operators and the investor community to comply with the Ghana Revenue Authority’s guidelines until such deliberations have been made.

“The Securities and Exchange Commission (SEC) wishes to inform all capital market operators and the investor community that, following the commencement of implementation of the Electronic Transfer Levy (E-Levy) Act 2022 (Act 1075) on May 1, 2022, by the Ghana Revenue Authority (GRA), the SEC is currently working with the Ministry of Finance (MoF) regarding the potential exemption of investment transactions from the E-Levy.

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.”

The Ghana Revenue Authority announced that the implementation of the E-Levy will be done with a modified phased approach to allow for the complete rollout of the levy.

However, SEC said “It is estimated that by the start of the second phase (July 1, 2022) of the modified phased approach adopted by the GRA, Charging Entities would have completed their integration with the GRA E-Levy Management System (Common Platform), thereby facilitating the complete identification of individuals, verification of daily threshold and exemptions across the various platforms of the Charging Entities.”

It thus urges all capital market operators to update their customers’ investment records using their individual National Identification Card (Ghana Card) and ensure full compliance with the directive issued by the SEC in July 2020 on Trust Accounts’ opening, maintenance and operation SEC/DIR/003/07/2022 which shall become a key ingredient in seeking potential exemptions for the market.

The Securities and Exchange Commission (hereinafter referred to as the “SEC”) is the statutory body mandated by the Securities Industry Act 2016 (Act 929) to promote the orderly growth and development of an efficient, fair, and transparent securities market in which investors and the integrity of the market are protected.