The Ghana Revenue Authority (GRA) is embarking on an ambitious effort to generate GH¢455 million in additional revenue by the end of this year. The primary focus of this initiative is the introduction of excise taxes on a range of products, including electronic cigarettes, electronic liquids (shisha), and various tobacco items, as well as beverages, fruit juices, spirits, and wines.
The decision to impose levies on these products aligns with the ECOWAS protocol on health taxes, to which Ghana is a signatory. The GRA, under the guidance of Commissioner Edward Gyambrah, is enforcing this move in accordance with the new Excise Duty (Amendment) Act, 2023 (Act 1093).
One of the noteworthy aspects of this ECOWAS directive is the requirement for excise duties on tobacco products to consist of both ad valorem and specific duties. Manufacturers and importers of the affected products will need to comply with the tax directive starting from September 1, 2023, while enforcement at points of entry is set to commence on October 1, 2023. The full implementation of enforcement at the point of sale to users is scheduled for January 2, 2024.
Commissioner Gyambrah emphasized the significance of these policies, including the newly introduced 10 percent tax on lottery winnings and the textile tax stamp implementation, as vital contributors to Ghana’s revenue performance.
In pursuit of its revenue target of GH¢106 billion for the year, the GRA has set high expectations for the Customs Division, anticipating a collection of GH¢28.5 billion in 2023. Additionally, the GRA has identified 93 businesses in the capital as enforcement targets.
This multifaceted approach to revenue generation, including excise taxes on various products and other initiatives such as e-VAT invigilation exercises, test purchases, and mystery shopping, highlights the GRA’s commitment to bolstering revenue mobilization in Ghana.
As the GRA forges ahead with these tax measures, it aims not only to meet its revenue goals but also to influence consumer behavior and promote healthier choices.
Source:thebftonline.com