The Ghana Revenue Authority (GRA) has announced that it will start implementing the new tax policies introduced in the 2021 Budget Report from May 1.
In a press release, the GRA commissioner general said parliament had passed the three new tax laws and amended two existing laws to be implemented in 2021.
The laws are the Penalty and Interest Waiver Act 2021 (Act 1065), the COVID-19 Health Restoration Tax Act 2021 (Act 1068), the Health Restoration Tax Act 2021 financial sector (Law 1067), the Energy Sector Tax (Amendment) Law 2021 (Law 1064) and the Income Tax (Amendment) Law 2021 (Law 1066).
The COVID-19 Health Recovery Levy Act, 2021 (Law 1068) and the Energy Sector Levy (Amendment) Act, 2021 (Law 1064) will be implemented as of May 1, 2021.
It comes after the government during the budget presentation announced new tax laws as part of the revenue measures to help the economy recover from the pandemic.
âThe Covid-19 Health Recovery Levy Act imposes a 1% levy on the supply of goods and services made in the country other than exempt goods or services; and the importation of goods and services other than exempt imports.
âThe Levy also applies to the supply of goods subject to flat-rate VAT. The Covid-19 Health Recovery Levy is not eligible as an input tax deduction, âthe GRA statement said.
The energy sector tax, the GRA explained, consists of two parts, namely the energy sector recovery tax and the sanitation and pollution tax.
“The imposition of an energy sector recovery tax of 0.20 pesewas per liter of gasoline / diesel and 18 pesewas per kg of liquefied petroleum gas (LPG) and the imposition of a tax sanitation and pollution of 0.10 pesewas per liter of gasoline and diesel respectively. “
The GRA, in the press release, also gave details of other levies, including the 2021 law on the financial sector recovery tax (Law 1067) which imposes a 5% tax on banks’ pre-tax profit. .
The Authority will implement the tax for the recovery of the financial sector from June 30.
âThe tax is payable in quarterly installments. However, for 2021, the levy is payable in three installments from June 30, 2021.