GRA to implement new tax laws

The Ghana Revenue Authority (GRA) says it will begin to implement the new tax policies introduced in the 2021 Budget Statement from May 1.

In a press release, the Commissioner-General of the GRA said that Parliament has passed the three new tax laws and amended two existing laws to be implemented in 2021. 

The laws are Penalty and Interest Waiver Act, 2021 (Act 1065), COVID-19 Health Recovery Levy Act, 2021 (Act 1068), Financial Sector Recovery Levy Act, 2021 (Act 1067), Energy Sector Levy (Amendment) Act, 2021 (Act 1064) and the Income Tax (Amendment) Act, 2021 (Act 1066).

The COVID-19 Health Recovery Levy Act, 2021 (Act 1068) and the Energy Sector Levy (Amendment) Act, 2021 (Act 1064) will be implemented effective May 1, 2021.

This comes after government during the budget presentation announced the new tax laws as part of revenue measures to help the economy recover from the pandemic.

“The Covid-19 Health Recovery Levy Act imposes a one per cent levy on the supply of goods and services made in the country other than exempt goods or services; and import of goods and services other than exempt imports.”

“The Levy also applies to the supply of goods subject to the VAT Flat Rate. The Covid-19 Health Recovery Levy is not allowable as an input tax deduction,” GRA’s statement read.

The Energy Sector Levy, GRA explained, comes in two parts namely the Energy Sector Recovery Levy and the Sanitation and Pollution Levy.

“The imposition of an Energy Sector Recovery Levy of ¢0.20 pesewas per litre of petrol/diesel and 18 pesewas per kg on Liquefied Petroleum Gas (LPG) and the imposition of a Sanitation and Pollution Levy of ¢0.10 pesewas per litre of petrol and diesel respectively.”

GRA, in the press statement also gave details of the other levies including the Financial Sector Recovery Levy Act, 2021 (Act 1067) which imposes a 5% levy on the profit before tax of banks.

The Authority will implement the Financial Sector Recovery Levy from June 30.

“The tax is payable in quarterly instalments. However, for 2021, the levy is payable in three instalments commencing from 30th June 2021.”