Since taking power in 2017, the administration has imposed more than ten new and modified taxes.

The Electronic Transfer Levy (E-Levy), which was implemented in 2022 and caused a great deal of controversy, is noteworthy among them. All electronic transfers are subject to a 1% fee under the Electronic Transfer Levy Act, 2022 (Act 1075).

The majority of these levies were implemented during the Covid-19 epidemic to strengthen the nation's tax base.

Nonetheless, they have driven up operating costs for enterprises and the cost of living. According to Joy Business, some companies pay more than 50% of their income in taxes.

A few outdated levies have also been changed, according to the administration, to increase tax collection and widen the tax base.

The Penalty and Interest Waiver Act 2021, Act (Act 1065), however, exempts those who make agreements from penalties and interest on accumulated tax arrears up to December 2020.

The week saw the passing of three new laws by Parliament and amendments to two others. This legislation now requires President Akufo-Addo's approval before being put into effect.

The additional taxes, according to some economists and market observers, are unneeded since they would burden firms and make their operations worse.

The three proposals amending the revenue tax have also been petitioned for by the Joint Business Consultative Forum, which also includes the Ghana National Chamber of Commerce and Industry, the Association of Ghana Industries, and the Food and Beverage Association.

Business organizations claim that the imposition of these taxes

1. Act of 2021 known as the Covid-19 Health Recovery Levy (Act 1068)

In light of the financial burden brought on by the Covid-19 Pandemic, the Covid-19 Health Recovery Levy Act of 2021 levies a 1% Covid-19 Health Recovery Levy.

This is true for both domestic and imported supplies of products and services.

2. Act of 2021 Increasing Financial Sector Recovery Levy (Act 1067)

A bank's profit before tax is subject to a 5% charge as part of the Financial Sector Recovery Levy.

The goal is to increase income to pay for associated expenses and assist banking sector reforms.

3. Act of 2021 Amending Income Tax (Act 1061)

In addition to suspending quarterly installment payments for some self-employed individuals and commercial vehicle owners, the Income Tax Act of 2015 (Act 896) also addresses other connected issues.

4. Act of 2021 Modifying the Energy Sector Levy (Act 1064)

According to the Energy Sector Levy (Amended) Act of 2021, some petroleum products will be subject to an Energy Sector Recovery Levy as well as a Sanitation and Pollution Levy in addition to other relevant expenses.

On March 31, 2021, President Akufo-Addo gave his approval.

According to the levy, liquefied petroleum gas (LPG) and gasoline would be priced at 20 Ghana pesewas per liter and 18 Ghana pesewas per kilogram, respectively.

5 Levy for Growth and Sustainability, 2022

The National Fiscal Stabilization Levy, which previously levied a fee on businesses engaged in several specific industries, was replaced by the Growth and Sustainability Levy. Also, it is anticipated to raise roughly 2.2 billion.

6 Levy for Excise Duty (Amendment), 2022

The Excise Duty (Amendment) Bill will add a 20% tax to wines, spirits, and sweetened drinks as well as cigarettes and e-cigarette devices. It is anticipated to bring in roughly $400 million each year,


7 Income Tax (Amendment) Bill 2022

The Income Tax (Amendment) Bill, 2022 will amend the Income Tax Act, 2015 (Act 896) to revise the individual income tax rates and add a new income tax bracket, add a withholding tax rate on the realization of assets and liabilities, and lottery winnings, consolidate the loss provisions carry forward, and change how foreign income is treated.

8 Creation of Assets and Liabilities with Withholding Tax

The Growth and Sustainability Levy has taken the position of the National Fiscal Stabilization Levy, which formerly assessed a tax on companies operating in several particular industries. Also, it is projected to raise around 2.2 billion.

9 Changes to Employee Motor Vehicle Benefits

The Excise Duty (Amendment) Bill will increase the tax on cigarettes, e-cigarettes, and sweetened beverages by 20%. It is projected to earn about $400 million a year.


10 Betting, lottery, and other games of chance winnings are taxed by withholding.

The Income Tax (Amendment) Bill, 2022 would update the individual income tax rates and introduce a new income tax bracket to the Income Tax Act, 2015 (Act 896) as well as combine the loss provisions carry forward and alter how foreign income is treated.


Act to Modify Value Added Tax, 2021 (Act 1072)

11  Act to Modify Value Added Taxes, 2021 (Act 1072) 

The Value Added Tax (Amendment) Act, of 2021 (Act 1072) updated how the VAT flat rate plan was implemented (VFRS). As a result, the VAT was raised from 12% to 15%.

Only merchants of products with taxable supply values of at least $200,000 but no more than $500,000 at the end of each 12 months are subject to the charge.

12 2018 GetFund (Amendment Act) ( Act 972)

Waiver

Act of 2021, titled "Penalty and Interest Waiver" (Act 1065)

A person who makes arrangements may be granted a waiver of penalties and interest on accumulated tax arrears up to December 2020 under the Penalty and Interest Waiver Act 2021.

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source: myjoyonline