The 13 taxes introduced by Gov’t since 2017
Since coming into office in 2017, the Ghanaian government has introduced 13 taxes (new and amended) in an effort to shore up the country’s revenue base. However, the introduction of these taxes has caused significant controversy and burdened both the cost of living for citizens and the cost of operations for businesses.
One notable tax introduced in 2022 is the Electronic Transfer Levy (E-Levy) under the Electronic Transfer Levy Act, 2022 (Act 1075). This tax imposes a 1% levy on all electronic transfers, which has generated a significant backlash from the public and businesses alike.
It is worth noting that most of the new taxes were introduced post-Covid-19 pandemic, as the government sought to raise revenue to support the country’s struggling economy. However, the unintended consequences of these taxes have been significant, with some businesses spending more than 50% of their revenue on taxes.
Moreover, some old taxes have been amended to what the government describes as “broadening the tax net and boosting tax revenue.” During the week, Parliament passed three new laws and amended two existing laws related to revenue tax, which are awaiting President Akufo-Addo’s assent for implementation.
Despite the government’s intentions to boost revenue, some economists and market watchers have criticized the new taxes as unnecessary and overburdening for businesses. The Joint Business Consultative Forum, which includes the Ghana National Chamber of Commerce and Industry, the Food and Beverages Association, and the Association of Ghana Industries, has also petitioned President Akufo-Addo on the passage of the three revenue tax amended bills.
According to the business groups, the implementation of these taxes will spell doom for the Ghanaian business community, further exacerbating the challenges already faced by businesses in the country. The concerns raised by these groups have been echoed by citizens and various stakeholders in the country, as they call on the government to review the taxes and reconsider their impact on the economy and businesses.
While the Ghanaian government’s efforts to raise revenue through the introduction of new taxes may be well-intentioned, the unintended consequences of these taxes cannot be overlooked. The country’s economy and businesses are already facing significant challenges, and the introduction of new taxes may only exacerbate the situation. It is therefore important for the government to carefully consider the impact of these taxes on the economy and the business community, and to take steps to mitigate any negative consequences that may arise.
Below are the 13 taxes introduced by the Gov’t:
1.Covid-19 Health Recovery Levy Act, 2021 (Act 1068)
2. Financial Sector Recovery Levy Act, 2021 (Act 1067)
3. Penalty and Interest Waiver Act 2021, Act (Act 1065).
4. Income Tax (Amended) Act, 2021 (Act 1061)
5. Energy Sector Levy (Amended) Act, 2021 (Act 1064)
6. Growth and Sustainability Levy, 2022
7. Excise Duty (Amendment) Levy, 2022
8. Income Tax (Amendment) Bill 2022
9. Withholding Tax on Realisation of Assets and Liabilities
10. Changes in Motor Vehicle Benefit for Employees
11. Withholding Tax on Winnings from Betting, Lottery and Games of Chance
12. Value Added Tax (Amendment) Act, 2021 (Act 1072)
13. GetFund (Amendment Act), 2018 ( Act 972)
I am sadly appalled by this rather propagandist, screaming headline. I racked my brain trying to identify the 13 new taxes. Then I read the article and found out that even the Penalty and Interest Waiver Act was called a tax, even though it actually granted remission of legitimate penalties for compliance infractions and interest lawfully chargeable on taxes declared by taxpayers as due to the State but which were not paid anyway! Does an amendment which puts more money into the pay packet of an employee constitute a new tax? And does the amendment of an already-existing tax act create a new tax? Does the write know what constitutes a new tax? The article is just too mischievous to be ignored.