The Ghana Revenue Authority (GRA) has announced January 1, 2024 as the implementation date for the seven tax amendments that were passed by parliament and signed into law by President Akufo-Addo.

This is was captured in a circular issued by the GRA and published in some newspapers.

The GRA also added that it will also develop administrative guidelines and publish notice on the implementation of the amendments where necessary.

The authority has also indicated that the payroll deductions for January 2024

“should reflect the  new rates provided in the Income Tax (Amendment)”.

Details of the taxes

President Akufo-Addo on December 29, 2024 signed into law seven Tax Bills passed parliament.  They are:

1. Value Added Tax (Amendment) Bill, 2023,
   
2. Excise Duty (Amendment) (No. 2) Bill, 2023
   
3. Stamp Duty (Amendment) Bill, 2023
   
4. Emissions Levy Act , 2023
   
5. Exemptions (Amendment) Act , 2023.
   
6. Customs Amendment Act  2023
   
7. Income TAX Amendment Act 2023.

The VAT Bill seeks to expand the tax net and extend the zero rate on locally manufactured products, introduce a zero rate on locally-produced sanitary towels and waive the VAT on the import of electric vehicles for public transportation.

The application of the tax may also result in Motor Insurance Premiums going by more than 21percent from next year. This is due to the application of Non-Life Insurance Business and products.

The Excise Duty Bill, which has been amended is to increase the excise duty rate on some drinks to align with excise duty rate on beer, reduce excise duty on plastics and expand the coverage of the excise duty on plastics to cover imported plastic packaging.

The Emission Levy Act:  imposes an emissions levy on carbon dioxide equivalent emissions from the specified sectors and internal combustion engine vehicle emissions.

On the Carbon Dioxide, this will result in the Construction Sector, Manufacturing, Mining, Oil and Gas, Electricity and Heating Sector will pay ₵100 per tonne of emissions per month.

On the Emissions from Motor, it will result in Motor Cycle and Tricycles paying 75 per Annum.

Motor Vehicles, Buses and Coaches above 3000 Capacity  and Cargo Trucks and Articulated Trucks will also pay  ₵300 per Annum.

Government’s Revenue Target for these taxes

Government could be raising more than ₵5 billio from these tax bill in 2024.  

The development may however result in cost of living going.

Key among them, will be another increase in motor insurance, which will go up more than 30 percent.