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The Ghana Revenue Authority (GRA) has announced it will implement new and revised taxes from May 1, 2023. The notice issued outlined three key tax measures: the Excise Amendment Act, Income Tax Amendment Act, and Growth and Sustainability Levy Act 2023.
Businesses have been given sufficient time to prepare for implementing the new taxes since the law was passed. However, the Ghana Union of Traders Association has expressed concern that it may be difficult for its members to absorb the taxes, and they may need to pass on the costs to consumers.
The Excise Duty Amendment Act will cover some items that were previously not included. This may lead to an increase in prices of processed fruit juice, cigar, mineral water, spirits, and wines, including sparkling wine.
Under the Income Tax Amendment Act, firms reporting losses for five years will be charged a minimum of 5%. Individuals earning beyond ¢500 will also attract taxes, with those earning an extra ¢100 subject to a tax rate of 5% and those earning ¢100 only subject to a rate of 10%. Individuals gain from the realization of investment assets or liabilities other than gifts regarding business or employment and may have to pay 25% of the value to the state.
Betting will attract 10% of earnings to the state. This will be deducted at the point of payment to the winners. Lottery and gaming firms will also pay 20% of their gross revenues.
Banks, non-bank financial institutions, telecom companies, and firms working in the oil sector will pay 5% of their profit before tax to the state. Mining firms, oil and gas companies, and all other firms will pay 1.0% and 2.5% of their gross production and profit before tax, respectively, to the GRA.
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Source: Omanghana.com
