From May 1 2021, the taxes announced by the Government in the 2021 Budget, including the new taxes on fuel, will take effect.
The taxes, borne out of the Government’s objective of Economic Revitalisation, through Completion, Consolidation and Continuity will reflect the imposition of the Energy Sector Recovery Levy of 20 Ghana pesewas per litre of petrol/diesel and 18 Ghana pesewas on each kilogram of Liquefied Petroleum Gas (LPG).
The COVID-19 Health Recovery Levy Act, 2021 (Act 1068) and the Energy Sector Levy (Amendment) Act, 2021 (Act 1064) will also take effect, imposing a one per cent lecy on the supply of any locally-produced goods and services except those enlisted under exempt goods or services and the import of goods and services except exempt imports. This levy also applies to the supply of goods subject to the Value Added Tax (VAT) Flat Rate but is not allowable as an input tax deduction.
In a statement signed by the Commissioner-General of the Ghana Revenue Authority (GRA), Rev. Ammishaddai Owusu-Amoah, the Authority said that Parliament has passed the three new tax laws and amended two existing laws to be implemented in 2021.
These laws include the 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), which will aid the government in the prevention of tax fraud and evasion.