The Ghana Revenue Authority (GRA) has revealed that the new and revised taxes that were included in the 2023 Budget will go into effect on May 1, 2023.
In a notice from the GRA, businesses have had ample time to set up their systems for the taxes since the laws were passed.
The new and revised taxes include the Excise Amendment Act, 2023, the Income Tax Amendment Act, 2023, and the Growth and Sustainability Levy Act, 2023.
The Income Tax (Amendment) Bill, 2022 is to amend the Income Tax Act, 2015 (Act 896) to revise the rates of income tax for individuals and introduce an additional income tax bracket.
The Amendment Act will charge a minimum of 5% on firms declaring losses for the next five years. Individuals earning more than $500 will be taxed, and the more one earns, the more taxes one will pay to the state.
The state will receive 10% of betting profits, while lottery and gaming companies will receive 20% of gross revenue. Individuals who receive gains on investment assets or liabilities, as well as other non-gift-related earnings, may be required to pay the state 25% of the value.
Excise Duty (Amendment) Bill, 2022 is to amend the Excise Duty Act, 2014 (Act 878) to revise the excise tax rates for cigarettes and other tobacco products to conform with the Economic Community of West African States (ECOWAS) protocols and raise revenue to mitigate the harmful effects of these excisable products.
The bill has also been expanded to include some previously uncaptured items and commodities, which may result in higher prices for processed fruit juice, cigars, mineral water, spirits, wines, and sparkling wine.
The Growth and Sustainability Levy Act requires banks, non-bank financial institutions, telecommunications companies, and oil companies to pay the state 5% of their profit before taxes.
Mining companies, oil and gas companies, and all other businesses will pay the GRA 1.0% of their gross production and 2.5% of their profit before taxes.
