The Ghana Revenue Authority (GRA) has initiated a series of engagements and sensitizations for stakeholders and the business community in Tema on the 12.5 percent upfront Value Added Tax (VAT) payment and the Growth and Sustainability Levy Act.
The engagements that commenced in April are also being used by the GRA to educate stakeholders on the filing of direct and indirect tax returns.
The stakeholders include the Ghana Institute of Freight Forwarders (GIFF), the Customs Brokers Association of Ghana (CUBAG), the Association of Customs House Agents, Ghana (ACHAG), the Freight Forwarders Association of Ghana (GIFF), the Ship Owners’ and Agents Association of Ghana (SOAAG), and many others.
On June 6, 2023, the GRA started the implementation of the 12.5 percent upfront VAT payment on the customs value of taxable goods at all ports of entry imported by persons required by law to register for the VAT in addition to the import duties and taxes.
The upfront payment is contained in the Value Added Tax (VAT) Amendment Act, 2023 (Act 10892), passed into law together with the Growth and Sustainability Levy Act, 2023 (Act 1095) and one other on the night of March 31, 2023.
Mr. Kwame Adu Kwakye, a Chief Revenue Officer at the Community 9 Taxpayer Centre, sensitizing stakeholders, said 12.5 percent VAT was not a new tax but rather a compliance tool.
He therefore urged stakeholders to adhere to it and the other acts and levies to help the government to achieve its revenue targets and aid in development.
He said the GRA deemed it crucial to engage its stakeholders on the tax laws due to the important role they played as intermediaries between the state agencies and the business community, especially in the clearance of goods process at the various ports of entry.
The Growth and Sustainability Levy Act, 2023, aimed at raising revenue for growth and fiscal sustainability of the economy, was assented into law on April 3, 2023, by President Nana Addo Dankwa Akufo-Addo and is payable in respect of profits before tax or production for the 2023 to 2025 years of tax assessment, which is subject to review by the finance minister in 2025.
The GRA has the mandate to collect the levy and pay all amounts collected under the ACT into the Consolidate Fund.
Under the ACT, companies have been categorized into three groupings, with Category A companies expected to pay five percent of profit before tax levy rate, while Category B companies would pay one percent of gross production, and Category C companies would be charged 2.5 percent of profit before tax.
Category A companies include banks, non-bank financial institutions, insurance companies, telecommunication companies, breweries, inspection and valuation companies, and companies providing mining support services.
Others are bulk oil distributors, oil marketing companies, communication tower operators, companies providing upstream petroleum services, companies registered by the security and exchange commission, specialized deposit-taking institutions, electronic money issuers, shipping lines, maritime terminals, and airport terminals.
Category B companies are mining companies and upstream oil and gas companies, while Category C covers all other entities not falling within A and B.
