The Parliament of Ghana passed the following tax laws in 2023;

1. Excise Duty (Amendment) Act, 2023 (Act 1093)
2. Ghana Revenue Authority (Amendment) Act, 2023 (Act 1096)
3. Growth and Sustainability Levy Act, 2023 (Act 1095)
4. Income Tax (Amendment) Act, 2023 (Act 1094)
5. Revenue Administration Act, 2022 (Act 1086)

These laws were gazetted on 3 April 2023. The Ghana Revenue Authority (GRA) issued a public notice confirming the implementation date for the new laws as 1 May 2023 with the exception of the Growth and Sustainability Act which applies as from 3 April 2023.

Act 1093 seeks to amend the Excise Duty Act, 2014 (Act 878). Act 878 was passed to provide for the collection of excise duty on selected imported and locally manufactured goods. Act 1093 seeks to increase the excise duty charged on specific goods such as cigarettes and tobacco products, wine, malt drinks, etc. produced locally or imported into the country. Act 1093 has also provided for new products such as electronic cigarettes and smoking devices to be included in the list of excisable goods in Ghana to conform to ECOWAS protocols.

The effect of this is that there is now an increase in the price of sugar sweetened beverages including fruit juices, sweetened tea and energy drinks. However, this can be viewed as positive since this is a measure on the part of the Government to reduce the impacts of Sugar Sweetened Beverages on public health following a comprehensive campaign by the Advocating for Ghana’s Health Coalition which asserts that the increased tax will reduce the consumption of sweetened beverages and improve the health of Ghanaians.

Act 1096 amends the Ghana Revenue Authority Act, 2009 (Act 791) to provide for laws subject to the administration of the Ghana Revenue Authority. The amendment mainly provides for a number of legislations which were not present in Act 791, to be used in the administration of the GRA.

Act 1095 repeals the National Fiscal Stabilisation Levy (NFSL) Act, 2013 (Act 862) and imposes a Growth and Sustainability Levy (GSL) of the percentage of the profit before tax or the percentage of gross production specified in the Schedule to the Act on specified companies and institutions to raise revenue for the growth and sustainability of the economy. Act 862 imposed a levy of 5% of profit before tax which was only limited to banks (excluding rural and community banks), insurance companies and other companies specified under the Schedule to Act 862. Under the Schedule to Act 1095, the affected companies have been categorised into three categories; A, B and C. Category A companies which include banks and insurance companies will be required to pay 5% of profit before tax, category B companies which include mining companies and upstream oil and gas companies will be required to pay 1% of gross production. Whereas category C companies which are all other companies which do not fall under categories A or B, will be required to pay 2.5% of profit before tax. By way of comparison, Act 1095 has broadened the scope of the companies and institutions to be affected by the GSL and has given a further breakdown of how much is to be paid.

The levy is payable quarterly, at the beginning of the year and this is speculated to have the tendency to collapse businesses.

Act 1094 amends the Income Tax Act, 2015 (Act 896) and its long time title states that act 1094 is “to amend the Income Tax Act, 2015 (Act 896) to revise the rates of income tax for individuals and introduce an additional income tax bracket; introduce a withholding tax rate on the realisation of assets and liabilities and on winnings from lottery; revise the treatment of foreign exchange losses; revise the upper limits for the quantification of motor vehicle benefits and provide for related matters.”

Act 1094 inter alia now requires a person to pay a minimum chargeable income of 5% of turnover where the person has been declaring losses for the previous 5 years of assessment. Winnings from lottery are now classified as investment income and subject to tax. The chargeable income from a lottery operation is the gross gaming revenue which has been defined in the Act as the total amount staked or wagered less prizes or winnings paid or payable. This amendment now affects lotto operations as well as sports betting. Stakeholders have raised concerns about attempts by Government to lay claims to the lotto winnings in the name of taxes.

Act 1086 amends the Revenue Administration Act, 2016 (Act 915) to amend the Revenue Administration Act, 2016 (Act 915) to provide for the Commissioner-General to establish a monitoring mechanism to determine or verify the actual revenue collected by a taxpayer, to introduce the requirement for a tax clearance certificate, to provide for returns in respect of the realisation of an asset or a liability and for related matters.

The aim of these laws is to stabilise the Ghanaian economy as according to the Government of Ghana, there is hope that these new laws and amendments will help generate some domestic revenue.

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DISCLAIMER: this article DOES NOT constitute legal advice or opinion. Its purpose is to provide general information to the public. One must consult his own tax, legal and accounting advisors before engaging in any transaction.