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Tax Flash Alert

New Tax Acts/Amendments

On 12 March 2021, the Minister for Parliamentary Affairs and Leader of Government Business , presented the 2021 Budget Statement and Economic Policy to Parliament which included some key Tax Revenue proposals to sustain Government of Ghana's fiscal outlook of maintaining an overall Gross Domestic Product (GDP) growth rate of 5.0% for the 2021 fiscal year. As a means of ensuring that the proposed revenue measures are implemented, the Ministry of Finance presented bills to Parliament which have been passed into law and received Presidential assent on 31 March 2021 to begin the implementation of the revenue proposals. This flash alert provides an overview of the respective enactments passed:

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Tax Flash Alert

1.      Energy Sector Levies (Amendment) Act, 2021 (Act 1064)

Act 1064 provides for an Energy Sector Recovery Levy (ESRL) and Sanitation and Pollution Levy (SPL) to be imposed on specified petroleum products. The details are as follows:

Levy                                                        Rate

  •   ESRL                                                - 20 Ghana pesewas per litre on Petrol and Diesel

- 18 Ghana pesewas per kg of Liquefied Petroleum Gas (LPG)

  •   SPL                                                   - 10 Ghana pesewas per litre on Petrol and Diesel

 

 

2.      Penalty and Interest Waiver Act, 2021 (Act 1065)

 

Act 1065 offers waiver of penalties and interests on accumulated tax arrears up to 31 December 2020 for persons who make arrangements with the Ghana Revenue Authority (GRA) for payment of the principal tax by 31 December 2021.

Thus, with the passage of Act 1065, when a person pays or makes the necessary arrangements to settle all outstanding tax or files outstanding tax returns up to 31 December 2020, the Commissioner--General (C-G) will not recover any assessed penalty or interest relating to the relevant period. The person will also not be liable to prosecution or any other enforcement action with respect to the tax due for the relevant period.

To qualify for this waiver, a person will be required to write an application in a form and manner prescribed by the C-G together with the tax returns by 30 September 2021 to the C-G. 

The C-G is expected to provide its decision on the acceptance or otherwise of the application to the applicant within 30 days.

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