The 2021 Budget included some key Tax Revenue proposals to sustain Government of Ghana‘s fiscal outlook of maintaining a 5.0% GDP growth rate for the 2021 fiscal year.

As a result, Parliament has passed three new tax laws and amended two existing laws, which have received Presidential assent on 31 March 2021 to begin the implementation of the revenue Proposals.

The laws are:

• 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)
• Income Tax (Amendment) Act, 2021 (Act 1066)

The COVID-19 Health Recovery Levy Act, 2021 (Act 1068) and the Energy Sector Levy (Amendment) Act, 2021 (Act 1064) are effective from 1st May, 2021.

Penalty and Interest Waiver Act 2021 (Act 1065)

• A waiver of penalties and interests on accumulated tax arears up to December 2020 for persons who make arrangements to pay the principal tax.
• The application for the waiver can done from the 1st April to the September 2021.
• The period of payment of the waiver lasts until 31st December 2021.
• The waiver does not apply to payments and returns due from 1st January 2021 under an enactment administered by the Commissioner-General.

COVID-19 Health Recovery Levy Act, 2021 (Act 1068)

• This Act imposes a 1% levy on the supply or import of goods and services made in the country. However, the levy does not apply to exempt goods, services and imports.
• The Levy also applies to the supply of goods subject to the VAT Flat Rate.
• The levy will operate in the same line as the exisng GETFund Levy and NHIL. It is therefore not subject to an input tax deduction.

Financial Sector Recovery Levy Act, 2021 (Act 1067)

• This Act imposes a 5% levy on the PBT of banks irrespective of any tax holiday or a tax exemption. Rural or Community Banks are, however, excluded from the levy.
• The tax is payable in quarterly instalments. However, for 2021, the levy is payable in three instalments commencing from 30th June 2021.

Energy Sector Levy (Amendment) Act, 2021 (Act 1064):

This amendment has added two additional sections, 5A and 5B

• 5A – The imposition of an Energy Sector Recovery Levy of 20 Ghana pesewas per litre of petrol/diesel and 18 Ghana pesewas per kg on Liquefied Petroleum Gas (LPG)
• 5B – The imposition of a Sanitation and Pollution Levy of 10 Ghana pesewas per litre of petrol and diesel respectively.

Income Tax (Amendment) Act, 2021 (Act 1066)

• This Act amends the Sixth schedule to the Income Tax Act 2015 and provides for a 30% rebate of income tax due for the second, third and fourth quarters of 2021 for taxpayers in the following areas – accommodation and food, education, travel and tours, and arts and entertainment sectors
• A suspension of quarterly income tax instalment payments for the second, third and fourth quarters of 2021 by self-employed persons applying the Income tax stamp system and owners of taxis and trotros under the Vehicle Income Tax (VIT) system.
• Moreover, the person must be registered with the GRA, made instalment payment for the first quarter of 2021 and continue to discharge any other obligation specified by the Commissioner-General.

Additional information on these laws and amendments can be obtained from the Ghana Revenue Authority website. The general public including all taxpayers are entreated to take note of these laws and amendments and comply accordingly.