The agreement followed a joint consultation meeting held in Accra on Wednesday, January 7, 2026, where both parties discussed the impact of the new VAT law, particularly on traders who previously operated under the VAT Flat Rate Scheme.

Under the agreement, all eligible taxpayers, including GUTA members, will charge and account for VAT at an effective rate of 20 per cent. This rate includes the VAT, the National Health Insurance Levy (NHIL), and the GETFund Levy, and will apply until the end of the first quarter of implementation, in accordance with the law.

A joint technical team, composed of representatives from GRA and GUTA, will be established to address sector-specific challenges such as VAT record-keeping, input VAT claims, and VAT calculations. The team will also make recommendations for future improvements.

In addition, nationwide education and sensitisation programmes will be intensified to guide traders through the transition and ensure compliance with the new VAT regime.

The GRA has assured traders of its full support and a collaborative approach to ease the transition, while GUTA has urged its members to comply with the new law. Both institutions reaffirmed their commitment to continued dialogue in the interest of traders, consumers, and national development.

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Mr Sarpong made the observation while speaking to journalists during a VAT compliance monitoring exercise at several shopping malls in the Spintex enclave in Accra. The exercise was aimed at assessing how businesses are complying with the new VAT framework introduced by government.

According to him, the reforms are part of a broader restructuring of the VAT system designed to ease the cost burden on both consumers and businesses.

“We came to visit some of the shops to witness firsthand how the implementation of the VAT reforms is going. This is a comprehensive reform aimed at easing the burden on consumers and businesses alike,” he said.

The revised VAT framework includes a reduction in the VAT rate, the abolition of the COVID-19 levy, the removal of the VAT coupling mechanism, and an increase in the VAT registration threshold for small businesses.

Mr Sarpong noted that early signs from the monitoring exercise point to strong compliance among retailers, adding that shops visited had successfully adjusted their systems to reflect the new rates.

“This morning, we visited a number of shops and we are satisfied that those we inspected have adjusted their systems accordingly and are applying the new VAT rates,” he stated.

He also said interactions with shoppers indicated growing consumer satisfaction, as some prices have already reduced following the reforms. This, he explained, supports the Finance Minister’s earlier claim that the VAT changes could return more than GH¢6.5 billion into the pockets of Ghanaians.

“We have engaged with consumers and we can see their appreciation of the reduction in VAT. Those who joined us today witnessed firsthand how consumers are benefiting from the reforms,” Mr Sarpong added.

The GRA Commissioner-General used the opportunity to urge businesses to continue complying with the new VAT framework and appealed to consumers to play an active role by demanding VAT invoices for every purchase.

“For us at the GRA, we continue to appeal to businesses to voluntarily comply with VAT requirements, properly charge VAT and issue VAT invoices. We also encourage consumers to demand their VAT invoices anytime they make a purchase,” he said.

He stressed that tax compliance remains critical to national development, noting that effective revenue mobilisation is key to supporting government’s economic agenda.

Mr Sarpong referenced the President’s vision for 2026 as a year of growth, job creation and national transformation, saying these goals can only be achieved if both businesses and consumers act responsibly.

“When businesses and consumers act responsibly, together we can generate the needed revenue to support national development, reset the economy, create jobs and transform the country for the benefit of all,” he said.

Operators of the shopping malls visited during the exercise confirmed that their systems had been recalibrated to reflect the new VAT regime and pledged continued compliance with the reforms.

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According to the Authority, prices of goods and services have declined by about 1.9 per cent since the reforms took effect, following the reduction of the effective VAT rate to 20 per cent.

Speaking during a VAT compliance monitoring exercise at shopping malls in the Spintex enclave, Commissioner-General of the GRA, Anthony Sarpong, said early signs show the reforms are working as intended.

He explained that the changes include a reduction in the VAT rate, the removal of the COVID-19 levy, the decoupling of VAT, and higher thresholds for smaller businesses.

Mr Sarpong said checks conducted at several shops showed that businesses had updated their systems and were applying the new VAT rates.

He noted that interactions with shoppers also confirmed growing satisfaction with the lower prices, reinforcing the government’s claim that the reforms are effectively putting money back into the pockets of Ghanaians.

The GRA boss used the visit to urge businesses to comply with the revised VAT framework voluntarily and to call on consumers to demand VAT invoices whenever they make purchases to strengthen enforcement.

He stressed that sustained compliance by both businesses and consumers is key to mobilising revenue for national development.

According to him, responsible tax compliance will support the government’s broader economic agenda of growth, job creation, and national transformation.

He added that the vision outlined by President John Dramani Mahama for 2026 depends mainly on the country’s ability to generate sufficient domestic revenue.

Malls visited during the exercise, including Palace Mall, Melcom, Orca Décor, United Commercial Trading, and Palace Home Décor, confirmed that their systems had been recalibrated to reflect the new VAT regime.

Customers at the malls also welcomed the changes, saying the price reductions were already being felt at the tills.

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According to the Ministry of Finance, the COVID-19 Levy has been abolished, a move expected to return about GH¢3.7 billion to individuals and businesses in 2026 alone.

The VAT rate has also been reduced to 20 percent to provide relief for consumers and enterprises. In addition, the GETFund and National Health Insurance Levy (NHIL) have been made input-output deductible, a change the government says will cut the cost of doing business by an estimated five percent.

Under the new reforms, businesses dealing in goods will now be required to register for VAT only if their annual turnover exceeds GH¢750,000, up from the previous threshold of GH¢200,000.

The VAT Flat Rate Scheme has also been abolished and replaced with a unified and more transparent VAT structure.

Overall, the government says the VAT reforms are expected to return nearly GH¢6 billion to businesses and households in 2026, describing the measures as part of broader efforts to reset the economy for growth, job creation and economic transformation.

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The changes include a reduction in the standard VAT rate, higher registration thresholds for small businesses, and the removal of several ancillary levies.

In an official notice to all VAT-registered taxpayers, the GRA confirmed that the standard VAT rate will drop to 20 percent, aimed at reducing the tax burden on households and businesses.

Additionally, the VAT registration threshold for businesses dealing in goods has been increased from GH¢200,000 to GH¢750,000, a move expected to exempt thousands of smaller traders from mandatory registration.

The reforms also abolish certain levies introduced in recent years. The COVID-19 Health Recovery Levy will no longer apply, while the NHIL and GETFund levies will now allow input tax credit claims, providing more transparency and easing compliance.

The VAT Flat Rate Scheme (VFRS) has been discontinued, replaced with a unified VAT structure designed to simplify the system and ensure clarity for all businesses.

The GRA emphasized that the reforms are intended to simplify VAT administration, promote fairness, improve efficiency, and encourage voluntary compliance.

The authority has directed its notice to VAT-registered taxpayers, employers, accountants, auditors, importers, exporters, clearing agents, and tax consultants.

For guidance or questions, the GRA encouraged taxpayers to visit the nearest Taxpayer Service Centre or reach out via their toll-free lines, WhatsApp numbers, or email.

The effective date of implementation is January 1, 2026, marking a significant milestone in Ghana’s ongoing tax and economic reforms.

The allegations, raised by the Traders Advocacy Group Ghana (TAGG), suggest that officers demanded additional payments from importers after intercepting containers bound for Kumasi, claiming undervaluation. Importers, however, insist the payments were unjustified.

In a statement, the GRA said it takes the matter seriously and has initiated a thorough internal investigation.

The Authority assured the public that the findings will be made known once the process is complete and encouraged stakeholders to report any suspected malpractice through the appropriate channels.

GRA reaffirmed its commitment to integrity, transparency, and fairness in all its operations.

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This follows claims by the Traders Advocacy Group Ghana (TAGG) that certain Customs officers intercepted containers headed for Kumasi and demanded additional payments after alleging undervaluation.

According to TAGG, the importer involved insisted that the demands were unjustified.

In a statement dated Thursday, November 27, 2025, the Authority said it has taken note of the concerns and is treating the allegations with utmost seriousness.

The probe, according to the GRA, will be thorough, with the findings to be communicated to the public once concluded.

The Authority reaffirmed its commitment to integrity, transparency and fairness in all its operations, stressing that misconduct of any form will not be tolerated.

It further encouraged traders, importers and the general public to support ongoing efforts by reporting suspicious activities through its official complaint channels.

The GRA added that safeguarding public trust remains central to its mandate and assured the public of full accountability as investigations progress.

Speaking on Asempa FM’s Ekosii Sen show, Mr. Sarpong explained that under existing law, commercial properties attract a 15% rental tax, while private residential properties are taxed at 8%. Landlords are required to deduct the tax from rent paid by tenants.

He further disclosed that the GRA is collaborating with the Real Estate Agency Council to access data on rented properties across the country, a move aimed at identifying landlords who fail to pay the mandated tax.

“The law imposes a 15% tax on commercial properties and an 8% tax on private properties. Landlords are required to collect rental tax from tenants, and tenants also have the option to pay the tax on behalf of landlords through their rent. We have established a working relationship with the Real Estate Agency Council to gather information on rented properties, enabling us to ensure proper tax collection,” he said.

Mr. Sarpong noted that the new satellite system, combined with partnerships with relevant agencies, will strengthen monitoring and boost revenue from the rental sector.

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Speaking on Asempa FM’s Ekosii Sen show, Mr. Sarpong said the exercise is part of efforts to ensure that businesses issue VAT receipts and remit the tax appropriately, particularly as the festive season approaches and commercial activity increases.

“As Christmas is approaching, it’s a busy season. From Monday, we will go round to ensure VAT is being paid. We urge everyone to comply because those who are not applying VAT on their receipts will be sanctioned,” he cautioned.

He also encouraged customers to always demand VAT receipts, noting that doing so makes verification easier and helps strengthen national revenue mobilisation.

“Pay your tax so we can build Ghana together,” he added.

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Speaking on Asempa FM’s Ekosii Sen show, Commissioner-General Anthony Kwasi Sarpong said the newly approved AI system will minimise human error, speed up duty assessment processes and enhance security checks across the ports.

According to him, the technology will calculate import duties within seconds, with human officers running parallel assessments to ensure accuracy and transparency.

“We will introduce AI to reduce human errors. The AI will ease the burden and calculate rates in a shorter amount of time. Humans will also perform their calculations so we can compare the results with those generated by the machine. We have taken this proposal to Parliament, and thankfully, it has been approved,” he said.

Mr. Sarpong added that importers will now receive information on their payable duties two weeks before vessels arrive, enabling faster processing and eliminating avoidable delays.

He stressed that the system is separate from ICUMS, explaining that the AI is capable of detecting narcotics, falsified declarations and high-risk cargo.

To ensure strong oversight, the GRA has set up a dedicated team at the Ministry of Finance that will operate independently of regular customs officers.

“Before the goods arrive at the ports, information regarding duties will be provided two weeks prior to the vessels’ arrival. This ensures that everything is ready before the vessels reach the ports, so importers should take note to avoid delays. This new system is different from the ICUMS system.

“The AI not only gathers information, but it also detects narcotics, counterfeit items and assesses risk profiles. We anticipate that AI will help increase our revenue at the ports by 40% annually. We have established a special team at the Ministry of Finance, separate from the regular customs staff. A few managers will oversee this team, and if anything goes wrong, they will be held accountable,” he added.

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Commissioner-General of the GRA, Anthony Kwasi Sarpong, revealed on Asempa FM’s Ekosii Sen show that the initiative — known as modified taxation — will allow individuals earning below GH₵500,000 annually to conveniently pay a 3% tax on their income using a mobile app.

He explained that the move is intended to eliminate the challenges that make tax compliance difficult for informal sector workers, many of whom are unable to leave their businesses to visit GRA offices.

“Some want to pay but they can’t. So we are making it simple and convenient. You will use your Ghana Card to register, pay on the app and receive your receipt instantly,” he said.

Mr. Sarpong appealed to business groups and stakeholders to support the rollout, emphasising that the platform will improve national revenue mobilisation while easing the burden on small business operators.

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The Executive Secretary of the National Identification Authority (NIA), Wisdom Yayra Kwaku Deku, has revealed that several key state institutions owe the Authority substantial sums for services rendered.

Speaking on TV3’s Hot Issues on Sunday, September 21, 2025, he disclosed that the National Health Insurance Scheme (NHIS) owes the NIA $58 million, the Passport Office $22 million, and the Ghana Revenue Authority (GRA) a staggering $377 million.

Mr. Deku warned that these institutions risk disconnection from the NIA’s biometric system by October 1, 2025, if the debts are not cleared.

“In total, NHIS owes us $58 million, Passport Office $22 million, and GRA $377 million. I have given a directive that by October 1, all institutions that have not settled their debts will be disconnected,” he stated.

He noted, however, that commercial banks, though indebted, remain consistent with payments because they rely heavily on the NIA’s services for daily transactions.

“The banks do pay because if you don’t pay, we will disconnect you — and that means the whole day you cannot perform any transaction,” he explained.

Mr. Deku further disclosed that the government currently owes Margins ID Group — the NIA’s private partner in Ghana’s National Identification System — between $64 million and $68 million under the Government Support Agreement.

The NIA and Margins ID Group operate under a Public-Private Partnership (PPP) to manage the Ghana Card and the national identification system.

Source: Adom Online

Speaking on JoyPrime’s 7th Edition of Showbiz Roundtable on Saturday, September 6, the Chief Revenue Officer and Head of the GRA IT Training Centre, Isaac Kobina Amoako, outlined the methods used by the Authority to identify income earners and track untaxed earnings.

“The same way we track all income earners is what we use. It may be through an informant who alerts us, or via a third party,” he explained.

“If we receive information that you are earning income, we may go straight to your bank account and monitor how money is flowing in.”

The official made it clear that bank account activity is a primary tool for uncovering hidden income, particularly for individuals who attempt to bypass the formal tax system. However, he noted that even those who do not operate bank accounts are not exempt from scrutiny.

“If you don’t have a bank account, there could still be something else. You might have a friend holding your money,” he said.

He explained that individuals who earn income but choose not to keep it in a formal bank account are not beyond the reach of the Authority.

“If the information indicates that you earn income but don’t keep it in a bank, and it’s with somebody else, the GRA can go to that person and collect.”

Source: Emmanuel Tetteh

According to the report, there were 147 prosecutions and 25 successful convictions.

However, it said the COVID-19 pandemic disrupted court processes in Ghana, causing delays in hearings and trials due to lockdowns and social distancing measures.

Subsequently, convictions for ML related to forgery increased, indicating a renewed efforts to clear backlog.

The report continued that Ghana has implemented measures to strengthen enforcement and investigative capabilities within the Ghana Police Service and the Economic and Organised Crime Office (EOCO).

This includes digitalisation efforts such as the introduction of the biometric National Identification Card (Ghana Card), electronic verification systems for IDs, licences and digital addresses.  Further, public awareness campaigns on “Police TV” have deepened awareness among the general public on forgery and other predicate offences. Training in forensic document analysis and digital forensics has been improved, and the financial sector has enhanced document security and verification processes.

Tax Offences

The Ghana Revenue Authority (GRA) was tasked with investigating and enforcing compliance with all the tax laws to ensure that individuals and businesses meet their tax obligations.

Tax offences in Ghana encompass a range of activities that violate the country’s tax laws, as outlined in Revenue Administration Act, 2016 (Act 915).

These offences include failing to file tax returns and making tax payments, providing false or misleading information, evading taxes, obstructing tax officers, failing to pay taxes on time and not maintaining proper records. Offences also cover unauthorised access to taxpayer information, failure to register for taxes and non-compliance with GRA notices.

The report added that the GRA recovers taxes through methods like garnishing bank accounts, seizing assets and placing liens on properties.

Data gathered showed that investigations into tax offences peaked in 2020 and rebounded in 2023. The yearly distribution is below.

Also, the data provided by FIC through the dissemination of Intelligence Reports (IRs) to GRA resulted in various tax assessments and collections from 2019 to 2023 as indicated in the table below.

According to the FIC, the data above highlights positive trends with respect to IRs disseminated by the FIC reflecting effective use of Intelligence Reports.

“One interesting area is crypto. The crypto market is evolving and growing very well. Today, people dealing with cryptocurrency are making money. Our laws are catching up, and we are working with the Securities and Exchange Commission and the Bank of Ghana to bring regulation. But in terms of tax laws, if you make a profit or gain, you’re supposed to pay that,” he said on Joy News’ PM Express Business Edition.

Mr. Sarpong explained that the GRA is developing systems that will capture digital transactions.

“So today, the technology we are going to deploy will be able to bring all crypto accounts into focus, and then we will work with these individuals to ensure they are brought into the tax net,” he said.

He emphasized that the broader objective is to align Ghana’s tax system with the growing digital economy.

“Digitisation and the digital economy are here to stay. The taxpayer of the future is digital. That’s why GRA is preparing to be digitally ready today and in the future, so we can continue delivering on our mandate of revenue mobilization,” he added.

Mr. Sarpong noted that the focus on crypto is part of a wider strategy to close loopholes in online transactions and ensure compliance with existing tax laws.

“Online business tax rules already exist, for example, VAT. If you pay in a physical shop, you pay VAT; the same applies online. Using technology, we will access VAT and tax at the point of payment, so challenges of tracing online transactions will be eliminated. We believe by September, we will deploy this technology, run a pilot by year-end, and scale it up,” he explained.

He stressed that the government’s policy is not to introduce new taxes but to enforce existing ones more effectively.

“The policy of President Mahama and the Finance Minister is to avoid introducing excessive new taxes. Our existing tax laws have sufficient measures that, once implemented, will help deepen and expand the tax net,” he said.

Source: Abubakar Ibrahim

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Appearing before the Public Accounts Committee (PAC) on Monday, August 25, 2025, Commissioner-General Anthony Kwasi Sarpong said measures are underway to recover the arrears.

Topping the debtors’ list is the Graphic Communications Group with GH¢3.4 million, followed by GIHOC Distilleries with GH¢2.1 million. The Tema Oil Refinery (TOR) also owes GH¢136,000.

The GRA noted that most of the indebted institutions, especially state-owned enterprises, blamed their default on persistent cash flow challenges.

In addition, the Authority disclosed that Value Added Tax (VAT) arrears amounting to GH¢116 million remain unpaid. This was confirmed by the Commissioner for Domestic Tax Revenue, Edward Apenteng Gyamerah.

Mr. Sarpong assured the Committee that the GRA is tightening enforcement measures to recover the debts and improve compliance.

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In a statement released on Thursday, the GRA expressed surprise over the accusation, stating that the supposed debt appears to be a legacy issue inherited before 2025.

According to the Authority, the financial arrangement cited by the NIA lacks the necessary regulatory and governance approvals required by current public finance and accountability frameworks. As such, the GRA considers the transaction non-binding.

The statement further noted that the NIA has operated registration centres within GRA offices across the country for several years without paying for rent or utility services.

While confirming that discussions at the highest level are ongoing to address the matter, the GRA stressed that there is no formal service contract validating the alleged GH₵376 million obligation.

“Our commitment to transparency and good governance prevents us from recognising transactions that do not comply with established regulatory procedures,” the GRA said.

The tax authority reaffirmed its willingness to collaborate with national institutions and called on the NIA to approach the issue with mutual respect and cooperation.

It also assured the general public that its service delivery remains unaffected and that it remains committed to upholding fairness and accountability in all its dealings.

Source: Adomonline.com

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Originally scheduled to take effect on June 9, 2025, the implementation was postponed twice due to stiff opposition from the Chamber of Oil Marketing Companies (COMAC), transport operators, and other stakeholders.

In an earlier statement, Acting GRA Commissioner-General Anthony Kwasi Sarpong explained that the decision to delay the rollout was to monitor global market conditions and help maintain recent fuel price stability.

Following a comprehensive market assessment, the GRA has now confirmed the rollout, stating it aligns with the government’s broader objective of maintaining stable economic conditions while addressing energy sector debt.

The adjusted rates reflect notable increases across various petroleum products:

• Petrol (motor spirit): GH¢0.95 → GH¢1.95

• Diesel (gas oil): GH¢0.93 → GH¢1.93

• Marine Gas Oil (foreign vessels): GH¢0.93 → GH¢1.93

• Marine Gas Oil (local): GH¢0.03 → GH¢0.23

• Heavy Fuel Oil: GH¢0.04 → GH¢0.24

• LPG and Naphtha: Remain unchanged at GH¢0.73 per litre

The increase in LPG and naphtha levies remaining unchanged is expected to bring some relief to households relying heavily on LPG for cooking and energy needs.

In a related development, President John Mahama, on Tuesday, July 15, 2025, announced the cancellation of fuel allowance allocations for all political appointees. The move is seen as a major step toward curbing waste and ensuring efficient use of state resources.

According to Deputy Presidential Spokesperson Shemima Muslim, the funds saved will be redirected into critical social and development initiatives, reinforcing President Mahama’s broader “Reform and Reset Agenda.”

Source: Adomonline.com

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Speaking on JoyNews’ AM Show, David Lartey-Quarcoopome, Chief Revenue Officer and Commissioner at the Domestic Tax Revenue Department Secretariat, explained that the tax was originally included under Act 870, which was passed earlier but later scrapped by the New Patriotic Party government in 2017. It was subsequently reintroduced through amendments in 2023.

“So indeed, it’s not a new tax, and why would I say so? When Act 870 was passed, insurance or taxation of financial services was included, under which insurance falls,” he emphasized.

He added that the GRA is now mandated to fully enforce the tax following the legislative update. The delayed rollout was necessary to develop adequate systems and frameworks for smooth implementation to minimize disruptions for insurance providers and policyholders.

“The GRA had to work on the modalities and various arrangements. We don’t work alone; we collaborate with stakeholders to issue practice notes and allow them to prepare their own systems to capture the tax appropriately,” he said.

Importantly, motor vehicle insurance premiums are exempt from this VAT. Mr Lartey-Quarcoopome confirmed that the government excluded motor insurance from the affected non-life insurance segments.

This move aligns with government efforts to broaden the tax base and enhance domestic revenue collection, particularly within the formal insurance sector.

The reforms, once finalised, will be implemented in the government’s 2026 economic policy and budget.

Commissioner of Domestic Revenue at the GRA, Edward Apenteng Gyamera, made this known to Joy Business after a stakeholder engagement with traders and business associations in Accra. The engagement forms part of a national consultation process to gather input from key players in the trade and business sectors.

The Ministry of Finance initiated the VAT reform following concerns over distortions in the current payment process, which has been in operation for over a decade.

Mr. Gyamera explained that the GRA is holding a series of consultations across the country to ensure that stakeholder views are captured and reflected in the final draft.

“This is part of the process to get every stakeholder’s input on the upcoming VAT reform by the Ministry of Finance. In all, we have four engagements in Accra and others in Kumasi, Takoradi, and Tamale before releasing the final draft in the next few weeks,” he said. “We should also bear in mind that these are just proposals and not final decisions.”

He assured that most of the contributions from stakeholders will be considered and that explanations will be provided in cases where specific suggestions cannot be incorporated.

The reform aims to broaden the tax base and increase VAT contributions to domestic revenue by over 20%.

Earlier this year, officials from the International Monetary Fund (IMF) met with the government and Finance Ministry to offer technical insights into the reform process.

According to the GRA, those recommendations will be carefully reviewed before any final decisions are made.

Source: Joy Business

Over 150 shops at Tech Junction trading centre in Ayigya through to Adako Jachie have been locked up by officers of the AshTown Tax Office.

Traders and business entities who had trooped to the market centre to open their shops for the day’s trading activity meet their facilities under lock and key.

The shops also had embossed on their gates inscriptions that read “GRA ASHTOWN TSC”.

The gates were also locked up with padlocks from the office, bearing varied numbers of the revenue mobilization office.

Although some traders are reported to have defaulted on their tax payments, others resented, arguing they had honoured their obligations.

At the tax office in AshTown, long winding queues were seen as the shop owners sought to reclaim access to their properties.

“When I went there, I showed them my tax sheet that I had made payments and I was given the key to come back and unlock my shop,” a shop owner told Luv Business.

The early morning task has seen trading activity at the market slowing as potential customers fail to make purchases.

“We have to turn away customers to elsewhere since the shops have been locked up. My boss is trying to get the keys at the Revenue office, so we open the shop,” a shop attendant said.

However, in an interview with Luv Business, Head of the AshTown Tax Office, Henry Gyan noted that individuals with their shops locked up failed to register for the Value Added Tax (VAT) while others reneged on the usual tax fees.

The office also refused arguments of not serving notices to the shops before carrying out the exercise.

“Notices of tax due had been served. Our officers went the monthly to remind them. Once they pay, we give them the keys to go and open their shops,” he noted.

The non-payment is adversely impacting the monthly and quarterly tax targets of the office.

At least 10.8 million cedis tax targets have been set for the office for the month of June.

The GRA is admonishing the businesses and the public to regularly pay up their taxes for national development.

Except for motor insurance, the new tax will apply to policies covering areas such as property, health, and travel.

In a statement, the GRA explained that the move forms part of measures outlined in the 2025 national budget and is expected to widen the tax net and boost revenue for public services.

For businesses and individuals, this translates into increased premiums on non-life insurance products.

Consumers seeking coverage in areas such as property, health, or travel may now face higher costs, prompting some to reconsider or scale back their coverage.

Although the measure could boost government revenue, it risks adding financial pressure on households and small businesses already grappling with a high-inflation economy.

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Originally scheduled to take effect today, June 9, 2025, the levy faced stiff opposition from the Chamber of Oil Marketing Companies (COMAC), transport operators, and other stakeholders.

The controversial levy, which imposes a GH¢1 charge on every litre of petrol and diesel, is part of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141).

Government says it is aimed at raising additional revenue to tackle mounting energy sector debt and to ensure a stable and reliable power supply.

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Under the new levy, consumers will pay GH¢1.00 on every litre of petrol or diesel purchased, beginning from the second pricing window of June 2025.

The GRA says the engagement is part of its consultative approach to ensure alignment with all industry players before implementation begins. The discussions will help clarify the implementation mechanisms and provide further guidance on the levy’s application.

Chief Revenue Officer at the Customs Policy and Programmes Department, Smile Agbemenu, explained to Joy Business that such engagements are routine whenever new tax laws or levies are introduced.

“We were supposed to engage the oil marketing companies over the weekend beyond the publications, but it has been deferred to this week. So we expect discussions with them by tomorrow [June 10, 2025] just to explain further the Commissioner-General’s tariff interpretation order regarding the collection of the additional GH¢1.00 for super and diesel and the 20 pesewas for other affected fuels,” he said.

He clarified that kerosene is exempt from the levy as it was not included in the new law.

“We already have the structures in place with the OMCs, so nothing is changing operationally except the additional GH¢1.00 for petrol and diesel and the 20 pesewas collection for the other affected products,” Mr. Agbemenu added. “They are familiar with the process and know that this is how we implement such levies.”

The GRA had earlier issued an interpretation order to OMCs and other stakeholders at the ports to begin collection from June 9, 2025. However, following several consultations, it was agreed that more time was needed to allow stakeholders to adjust their systems.

The new effective date for implementation is now confirmed as Monday, June 16, 2025.

The Energy Sector Shortfall and Debt Repayment Levy, passed under the Energy Sector Levy (Amendment) Act, 2025, aims to raise additional revenue to help pay energy sector shortfalls, reduce legacy debts, and stabilise power supply across the country.

Originally scheduled to take effect today, June 9, 2025, the levy faced stiff opposition from the Chamber of Oil Marketing Companies (COMAC), transport operators, and other stakeholders.

However, according to reports by Accra-based Citi News, the implementation date has now been shifted following engagements with key stakeholders.

“The Association has concerns with the 9 June implementation date. We have discussed with their leadership in the spirit of cordiality and partnership and have agreed on a new start date of 16 June,” the Authority stated.

The controversial levy, which imposes a GH¢1 charge on every litre of petrol and diesel, is part of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141). Government says it is aimed at raising additional revenue to tackle mounting energy sector debt and to ensure a stable and reliable power supply.

Meanwhile, the Commissioner-General of GRA, Anthony Kwasi Sarpong, has urged all ports and fuel stations to ensure strict compliance with the revised directive.

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This was contained in a statement issued by the Ghana Revenue Authority (GRA) through Tariff Interpretation Order (TIO) No. 2025/003, which clarified and enforced the implementation of the Energy Sector Levies (Amendment) Act.

The Act was introduced to raise additional revenue to address energy sector shortfalls, reduce legacy debts, and stabilise the country’s power supply.

The GRA directive outlines significant increases in the Energy Sector Shortfall and Debt Repayment Levy on a range of petroleum products, including petrol, diesel, marine gas oil, and heavy fuel oil.

The Commissioner-General of GRA, Anthony Kwasi Sarpong, has urged all ports and fuel stations to strictly comply.

The statement added that the Bioland Clearing House Mechanism (CHM) platform is expected to complement the initiative by improving transparency and coordination in national energy and environmental planning.

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Read the full statement below:

This is part of the ongoing effort to review the entire VAT payment system to capture all VAT-registered taxpayers across the board and provide an improved and upgraded platform.

Acting Commissioner-General of the GRA, Anthony Kwasi Sarpong, believes the enhanced system will offer a simplified VAT accounting process for all taxpayers.

The Commissioner-General made these remarks during a virtual engagement with stakeholders.

“The electronic VAT exercise is ongoing, but as you may be aware, we’re conducting a comprehensive review of the entire structure, and the Minister for Finance, Dr. Cassiel Ato Forson, is seriously giving it attention. We hope to conclude the work soon and seek parliamentary approval. What I can assure you is that the process is becoming more enhanced, with modern technology playing a key role in ensuring full accountability at the end of the day.

“We have onboarded a number of taxpayers already, and we shall continue after the Minister’s directive to ensure an equitable tax system,” he said.

Currently, over 3,000 taxpayers are onboard and live on the E-VAT system since its introduction in 2022.

According to the GRA, there is an ongoing compliance exercise with the existing taxpayers on board. This will support an assessment of the exercise’s performance as implementation enters its final stage.

By the end of 2024, over 5,000 taxpayers had been engaged nationwide and are ready for onboarding after a series of talks with the GRA.

The onboarding exercise is ongoing despite challenges with taxpayer systems and technicalities in the overall process.

The electronic VAT system is part of the mandated provisions in the Revenue Administration Act, 2016 (Act 915), empowering the Commissioner-General to ensure an equitable and fair tax administration system.

The E-VAT implementation will help formalise a large number of informal taxpayers, boost domestic tax revenue, improve efficiency in tax administration, and support effective tax audits.

This move forms part of the Authority’s broader efforts to expand the tax net and improve domestic revenue mobilisation.

Acting Commissioner-General of the GRA, Anthony Sarpong, made the disclosure during an X-Space discussion hosted by Imani Ghana and its media partners on the theme, “Resetting Ghana’s Revenue Mobilization.”

“The strategy is to widen the tax net through the use of technology. As you may be aware, many businesses have moved online and are transacting on various apps and channels. So that’s the way to go,” he stated.

He continued: “Secondly, we are integrating through API with other institutions at data points. For instance, we have commenced discussion with the Registrar of Companies to ensure that every business and individual doing business and registered with them are connected to our data point.”

Mr. Sarpong further added that the Authority is in talks with SSNIT to ensure tax compliance among businesses.

“Another one is SSNIT. We do know that people will file their social security because it is their future for retirement but will not pay their taxes. So, it is essential that we connect with an institution like SSNIT to ensure that every business associated with them can be identified and pay accordingly,” he noted.

He also revealed that the GRA plans to engage business associations, especially in the informal sector, to support its efforts to get more individuals and businesses to declare and pay their taxes.

The Board is chaired by Hon. George Ricketts-Hagan, former Deputy Finance Minister and Member of Parliament for Cape Coast South.

The full list of members includes:

1. Hon. George Ricketts-Hagan – Chairperson

2. Mr. Anthony Sarpong (GRA Commissioner) – Member

3. Mr. Patrick Nomo – Member

4. Hon. Elizabeth Ofosu-Adjare – Member

5. Dr. Zakaria Mumuni – Member

6. Madam Faustina Nelson – Member

7. Mr. George Ayiretey – Member

8. Hon. Laadi Ayamba – Member

9. Mr. Francis-Xavier Sosu – Member

A Defining Task Ahead

Speaking at the inauguration ceremony in Accra, Dr. Forson expressed gratitude to President John Dramani Mahama for appointing what he described as a “distinguished team of esteemed and accomplished individuals” to lead the Authority.

“This is a defining moment,” the Minister stated. “You assume this mantle at a time when the government faces significant fiscal constraints—with tight financing conditions, limited access to the capital market following the debt restructuring programme, and dwindling grants from development partners.”

Dr. Forson emphasised that, in the face of these fiscal pressures, the government’s number one priority for 2025 and the medium term is to optimise domestic revenue mobilisation. He disclosed that the government has programmed to increase revenue collection by at least 0.6 percentage points of GDP annually, targeting a primary fiscal surplus of 1.5% of GDP by 2025 and reducing the external debt service-to-revenue ratio from 28% in 2022 to 18% by 2028.

He cited the recent withdrawal of USAID funding—over US$78 million in health and US$156 million in economic growth and education programmes—as a stark reminder of the urgency to strengthen Ghana’s domestic revenue base.

Key Focus Areas

Dr. Forson outlined several strategic focus areas for the new Board and GRA management. These include accelerating the modernisation of the Authority’s operations, building a culture of integrity, combating smuggling, reforming internal operations, and fostering closer collaboration with the Ministry of Finance’s Revenue Policy Division.

“The Ghanaian public must have unwavering confidence in GRA’s commitment to fairness and ethical conduct,” he stressed. “Revenue lost through corruption translates to unbuilt schools, unpaved roads, and lives adversely affected by inadequate healthcare and poor sanitation.”

He also announced a policy to rotate GRA officers every two years to reduce the risk of collusion, broaden professional experience, and strengthen institutional performance.

Additionally, the Minister revealed plans to sign a performance bonus Memorandum of Understanding with the Commissioner-General—witnessed by the Commissioners for Domestic Tax and Customs—to enhance operational accountability.

Commitment to Deliver for Ghana

In his concluding remarks, Dr. Forson reaffirmed his Ministry’s commitment to supporting the new GRA Board and management to deliver on their mandate.

“Let us remember that every tax cedi collected—and every integrity-driven decision made—brings us closer to building the prosperous, inclusive, and self-reliant Ghana we all want together,” he said.

The Finance Minister then formally declared the Governing Board of the Ghana Revenue Authority inaugurated.

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This follows reports suggesting that the authority had taken enforcement action against him.

In a press statement issued on Thursday, March 27, 2025, the GRA explained that while a tax assessment of GH₵30 million has been raised against Quaye, no enforcement measures—such as freezing his accounts—have been implemented.

“The authority has issued an assessment on him relating to his income taxes, but we have not commenced any enforcement action such as freezing his bank accounts,” the statement read.

The GRA urged the public to disregard the false reports and emphasized that it adheres to due process in tax matters. It further clarified that enforcement actions, including account garnishments, are only taken when taxpayers fail to cooperate after an assessment has been raised.

The authority also encouraged all eligible taxpayers to voluntarily disclose their incomes and fulfill their tax obligations to avoid penalties, interest, and legal consequences.

Meanwhile, the GRA reaffirmed its commitment to fairness, integrity, and transparency in tax administration, assuring the public that all compliance matters are handled in accordance with established procedures.

Background

Mr. Quaye recently marked his 40th birthday with a lavish celebration at the Black Star Square in Accra, drawing top local and international dignitaries, business elites, and entertainment figures.

The extravagant event, dubbed #RNAQ40, was attended by some of Ghana’s most influential personalities, including Dr. Osei Kwame Despite and Dr. Ernest Ofori Sarpong, underscoring Quaye’s strong ties to the nation’s business and social circles.

Also present were government officials, industry leaders, and prominent figures from the international business community, all gathered to celebrate his achievements over the years.

The event featured electrifying performances from Nigeria’s Davido and Ghana’s Sarkodie, while Stonebwoy’s Afro-dancehall energy kept the audience engaged throughout the night.

Speaking to Joy Business after introducing the new Commissioner of Customs, Brigadier General Glover Ashong Annan, to officials at the Tema Sector Command, Mr. Sarpong assured that the GRA will fully implement Parliament’s decision to abolish the levies.

“We’re an implementing institution, and once the law has been passed, we will take it off. Our President has indicated his commitment to this, and through the Minister, it has been done. E-Levy and betting tax have been abolished along with other taxes presented by the Minister on behalf of the President in Parliament,” he stated.

He added that the GRA would swiftly update its compliance systems to ensure Ghanaians benefit from the tax reliefs.

At a brief ceremony to welcome the new Customs Commissioner, outgoing Commissioner Brigadier General Ziblim Ayorongo urged officers to give their full support to Brigadier General Annan in executing the President’s mandate.

Brigadier General Annan pledged to continue effective policies to help meet the country’s revenue targets.

The delegation later visited the Tema Oil Refinery Command at the Tema Industrial Area before returning to Accra.

According to the acting Commissioner-General of the GRA, Anthony Kwasi Sarpong, the initiative aims to boost domestic revenue collection to support government expenditure.

Speaking to JoyBusiness during a tour of key tax centres and Customs collection points, Mr. Sarpong urged officials to work toward achieving at least GH₵11 billion monthly, constituting about 5% of the annual target.

“Based on your performance last year, I will be expecting you to do a minimum of GH₵11 billion, which will constitute about 5% of our working target, which is GH₵220 billion,” he told GRA officials.

“I have every belief that you will achieve that. Our work is also to ensure that we give you some of the logistics and support so that you can have peace of mind and focus on the work,” he charged.

During a visit to the Tema Port Collection point, the Sector Commander, Assistant Commissioner Thereza Potarkey, assured Mr. Sarpong of efforts to surpass the revenue target. She, however, called for additional resources to enhance operations.

“Based on the fact that the Tema Collection is responsible for generating almost all of Customs revenue, I must respectfully state that the Collection needs to be better resourced. I don’t intend to bore you with a myriad of problems, but I shall mention a few challenges we face that hinder our operations,” she noted.

She highlighted infrastructure deficits as a major concern.

“Our current working environment needs to be upgraded to provide a good working environment for our staff and the general public. This upgrade will not only enhance our operational efficiency but also improve the overall experience for our clients,” she added.

The visit allowed Mr. Sarpong to engage with tax officers and discuss strategies to meet the GH₵220 billion revenue target.

The team also visited the management of MPS Port Services, where key concerns were raised for government intervention.

It is not immediately known to JoySports whether the mattresses were intended for the revamped Ghanaman Soccer Centre of Excellence or for another purpose.

Last week, JoySports reported that some of the buses imported by the football governing body for GHC 5,175,000 and cleared by Freightgistics Ghana Company Ltd. had yet to be registered due to the unavailability of documentation, according to some clubs.

The report indicated that the “used Hyundai County bus” arrived with other items in the container, which could not be readily identified.

It has now emerged that these additional imported goods were medium-sized and student mattresses.

JoySports’ Muftawu Nabila Abdulai had written to the GRA requesting details of the container’s contents.

However, the response was received after the story had been published, so these details were not incorporated into the initial report.

The GRA explained that the container, which delivered the used Hyundai County bus (black matte), contained 25 packs of medium-sized mattresses and 15 packs of student mattresses.

In total, the Ghana FA imported 40 mattresses in that specific container.

The cost, insurance, and freight (CIF) value of the bus was GHC 212,783.08, while the 25 medium-sized mattresses were valued at GHC 32,597.50, and the 15 packs of student mattresses at GHC 14,027.29.

As stated in the March 4, 2025, publication, the total duty on the bus was GHC 72,116.10.

Regarding the mattresses, per the GRA’s breakdown, the duty on the 25 medium-sized mattresses was GHC 17,000.86, while the duty on the 15 student mattresses was GHC 7,311.63.

“[Meanwhile]… the total duty on the container’s contents amounts to GHC 96,972.46.”

The total amount spent on the container, including the CIF value and duty, is GHC 356,380.33.

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The truck, registered AS 2103-W, was driven by one Ibrahim Fatawu. The smuggled cocoa beans were concealed in gallons, an attempt to evade Ghana’s regulated pricing system and sell them in Togo.

Director of Special Services at COCOBOD, Charles Amenyaglo, confirmed the interception, stating that it highlights the persistence of cocoa smuggling.

“This interception proves that cocoa smuggling remains a serious issue in Ghana. We are intensifying efforts to track down these illegal activities and protect our farmers and the economy,” he said.

The seized consignment is currently in the custody of COCOBOD and GRA, pending further investigations.

The COCOBOD Head of Security reiterated the Board’s commitment to safeguarding Ghana’s cocoa industry.

“We remain vigilant and will continue working with security agencies to prevent cocoa smuggling, which threatens the livelihoods of our hardworking farmers and the economy as a whole,” he emphasized.

Meanwhile, authorities have warned that those involved in cocoa smuggling will face strict legal consequences.

This latest interception reinforces COCOBOD and the government’s resolve to clamp down on illicit cocoa trade across the country.

COCOBOD has urged the public to report any suspicious cocoa-related activities to ensure Ghana’s prized commodity remains within regulated trade channels.

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Speaking at the recent Downstream Petroleum Dialogue organized by COMAC, Mr. Kumi stressed that while the chamber supports an effective tax collection system, it will not tolerate disruptions such as system failures that negatively impact business operations.

“We don’t have any problem if the system is making tax collection efficient…we support all that. But at the end of the day, we expect our members to have a trouble-free experience, with no bottlenecks in placing orders,” he stated.

ICUMS is a customs management and port community platform designed to process documents and payments through a single window, replacing multiple vendors with a single service provider.

Mr. Kumi cautioned that persistent technical challenges could lead to frustration among industry players.

“The system should not be implemented in a way that negatively affects our operations. That’s all we are saying. We are calling on the GRA and the Ghana Ports and Harbours Authority to resolve any bottlenecks permanently. We have tolerated these hiccups for the past year, but going forward, we may not have the patience to continue tolerating them,” he warned.

In 2020, the GRA announced that all transactions related to import and export manifests must be processed through either ICUMS or the Ghana Customs Management System at the Port of Tema and all other entry points.

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The aggrieved group, reportedly unhappy with Mr. Sarpong’s appointment, argued that he was not part of the NDC’s struggles during its time in opposition and should not be allowed to hold such a significant position under the current administration.

The group also alleged that Mr. Sarpong has affiliations with the opposition New Patriotic Party (NPP), further fueling their dissatisfaction.

Following a heated confrontation with security personnel, the group eventually agreed to leave the premises but vowed to return if Mr. Sarpong remains in office.

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Data seen by JOYBUSINESS shows that the GRA mobilized GH₵7.5 billion more than the GH₵145.9 billion targeted for 2024, representing 5.3 percent increase.

The performance, according to the GRA, represents a nominal growth of 35 percent compared to 2023.

The addition of Sanitation Debt Recovery Levy, Energy Sector Debt, Sanitation and Pollution Levy, put the total revenue at GH₵157. 9 billion.

Drivers of the 2024 revenue collection

The component of domestic revenue grew by 31.6 percent, while Customs grew by 47.0 percent.

Most of the direct tax handles mobilized more than what was anticipated by the GRA.

For instance, the GRA was hoping to get GH₵30 billion from Corporate Tax. The authority however ended 2024 collecting GH₵38 billion.

Mineral Royalty brought in GH₵5.2 billion as against the target of GH₵3 billion.

Airport tax brought in GH₵1.6 as against a target of GH₵1.3 billion.

Persons close to the GRA have told JOYBUSINESS that apart from some tax handles doing very well, the authority’s quest to press hard on compliance also helped in meeting the target for 2024.

Performance of e-levy and Covid-19 levy

The GRA was hoping to collect GH₵2.1 billion for e-levy in 2024. However, it ended up realizing GH₵2 billion.

For the COVID-19 Heath Recovery Levy (Flat Rate). The GRA was targeted GH₵128 million but got GH₵86 million.

For the COVID-19 Heath Recovery Levy (Standard Rate), the GRA got GH₵2.7 billion as against GH₵4.2 billion.

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He highlighted the GRA’s ongoing efforts to enhance its reputation and boost revenue collection, urging the media to support these efforts by exposing GRA officers found with credible evidence of misconduct for disciplinary action.

Brigadier General Ayarroga made these remarks during a media forum in Sunyani on Thursday, October 24, following a three-day working tour across the Bono, Bono East, and Ahafo regions.

During the tour, he engaged with staff, inspected facilities, and addressed operational challenges impacting the organization.

Emphasizing that tax revenue is crucial for national development, he encouraged staff to apply effective and transparent practices that assist traders and the business community in fulfilling their tax obligations.

Addressing concerns from the media, the Commissioner reaffirmed that capacity building, discipline, and professionalism remain integral to improving service delivery within the GRA.

Source: Adomonline

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Marking the day in Tema a team of NAS staff took the personnel of the GRA, Custom Division through various skills on Basic Life Support (BLS) techniques.

The program on the theme: “Use Heart for Action” was held for over Sixty staff of the GRA, Customs Division.

The customs officers were taken through Cardio Pulmonary Resuscitation (CPR), Choking Management and Blood Control techniques.

The Deputy Director of Public Relations for the National Ambulance Service, Simmons Yussif Kewura speaking on behalf of their CEO, Prof Ahmed Nuhu Zakariah expressed their gratitude for being allowed to provide this essential service.

He urged them to take the training seriously, regardless of their background or position, because the skills acquired will help them save a life in an emergency.

The Assistant Commissioner (AC) Theresa Potakey sector 2IC at the Tema collection also highlighted the relevance of the training and thanked the National Ambulance Service for this kind of initiative.

Some of the officers who went through the training stated that they have learnt a lot, and it has positioned them well in case the need arises.

The National Ambulance Service is available to train schools, corporate organizations and the general public on Basic Life Support Techniques.

World Heart Day is an important annual event, witnessed every year on 29th September.

The day is celebrated by organizing various activities and awareness events globally to raise awareness about heart disease and its preventive measures to manage cardiovascular diseases.

The events mainly focus on educating people about the signs and symptoms of cardiovascular disease to avoid any further complications and encouraging people to inculcate healthy lifestyles to prevent and control any heart-related ailments.

Source: Alex Treve Quarshie

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According to the two chambers of commerce, the illegal activity threatens the survival of legitimate beverage manufacturers and undermines government revenue through taxation.

In a joint statement, they said some of these beverages are offered for sale without tax stamps and at prices significantly below prevailing market rates, making them accessible only to those who evade necessary customs duties, excise taxes, and other levies.

They lamented that the smuggling of these products raises serious health and safety concerns for consumers.

“The Food and Drugs Authority (FDA) cannot verify the quality of these beverages, as they bypass established health regulatory processes. Authorised dealers and franchisees suffer reputational damage when inferior products are passed off as their own in the market”.

“We urgently call upon the GRA to take decisive action to halt the smuggling of these PET and canned beverages, particularly Coca-Cola products, which are among the most affected. We also urge the FDA, local authorities, and market leaders in major regions such as Accra, Kumasi, Tamale, and Takoradi to act decisively to protect these brands, preserve government revenue, and safeguard employment opportunities within the beverage sector”, they stated.

“Additionally, we entreat the Ministry of Trade and Industry, through the Ghana International Trade Commission (GITC), to address these unfair trade practices. This action is essential to encourage investment in Ghana’s manufacturing sector and ensure a level playing field for all businesses operating within the country”, they opined.

They concluded that, the smuggling of beverages into Ghana not only undermines legitimate businesses and government revenue but also poses risks to consumer health and safety.

They called on all stakeholders to collaborate to combat this issue effectively.

According to the law, withholding agents are required to remit withheld taxes to the Commissioner-General of the Ghana Revenue Authority (GRA) within 15 days after the close of each calendar month.

However, the Auditor-General’s report has uncovered that several Assemblies, including the Atwima Nwabiagya North District, Amansie West District, Bosome Freho District, Banda District, and Wenchi Municipal Assembly, among others, have not adhered to this mandate.

This issue surfaced during the second day of PAC’s hearings in Sunyani, where the Committee reviewed the Auditor-General’s Report on the Management and Utilisation of the District Assemblies Common Fund and other Statutory Funds for the year ending December 31, 2023.

The Committee expressed serious concern over the failure to remit taxes, emphasizing that such lapses could impact the payment of salaries and allowances. PAC urged the Assemblies to immediately cease these illegal practices.

Additionally, the Committee advised the Assemblies to set realistic targets and operate within their budgets, noting that some Assemblies’ Internally Generated Funds (IGF) are inadequate to support the projects they have undertaken.

This shortfall has resulted in delays or the abandonment of these projects, referred to as “legacy projects,” which ultimately increase costs and negatively affect local communities.

PAC further observed that some completed projects have yet to be utilized by the Assemblies.

The Committee also appealed to the Free SHS Secretariat to release funds to Senior High Schools (SHS) to ensure their smooth operation.

Several school heads expressed frustration, revealing that since February 2024, they have received only GH¢9,000 for recurrent expenses, with no additional funds provided since then.

PAC condemned this situation as unacceptable.

Source: Adomonline.com

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Addressing this challenge which has existed for years, the Ghana Revenue Authority is initiating programmes and devising strategies to encourage payment of tax.

Accra East Area Director of the Domestic Tax Revenue Division of the Ghana Revenue Authority, Joseph Asare, disclosed at a sensitisation event at Tema.

“As the Commissioner General said we’re partnering with civil society organisations, religious bodies, the Chief Imam among other opinion leaders and we at the local level are getting closer to the associations, market women, clubs, and the rest”.

“By getting closer to them, it will enable us to take concerns and feedback and address them appropriately,” he said.

Mr. Asare further added that as a way of encouraging payment GRA has introduced online payment, E-invoicing and others to ensure convenience and compliance.

“You will be given the Commissioner General’s invoice when you visit the shops which is part of the innovations”.

At the event, Joy Business noted that one of the areas of concern was the slight confusion between levies and tax as some traders insisted there was no point paying both.

On this, Joseph Asare, clarified that levies or tolls paid are meant for the day-to-day management of the respective assemblies but income tax and other forms of taxes are paid to central government for national development.

“For instance, drivers pay booking fee after loading in Tema and will do same after reaching Kumasi and loading there too. We have advised the market heads to make available people we can train on tax obligations to serve as trainers,” he stated.

He encouraged the traders to access the service through short code *22#.

Office Manager, Taxpayer Service Centre for Tema Community 1, Lydia Owusu Banahene, pointed out the education was really needed as it enabled them to explain modified taxation to the traders.

She said as a way of cushioning taxpayers when COVID-19 struck, payment was suspended and returning to pre-covid in terms of payment seems new to some traders.

Vice chair of the Tema Central market, Philip Kyei encouraged all traders to fulfil their tax obligation to help develop the country.

“How do you expect the government to build schools, road, and address other challenges if you don’t pay tax. I will urge GRA to reach all corners with the education to ensure compliance”.

Letitia Adjei who runs a convenience shop is ready to pay tax but is unhappy over deplorable network in areas including Washington in the Kpone-Katamanso municipality.

She also expressed worry over the number of fees being paid to Tema Metropolitan Assembly which negatively impacts business.

According to her, GRA has deferred this year’s payment to next year.

The event was in two parts, tax education and health screening at Community One lorry terminal.

The new tax regime, which is expected to be implemented by 2025, is aimed at widening the country’s tax base, to include the informal sector in tax compliance.

Kumasi Area Director of the GRA, Agnes Akosua Boateng, says the new system will simplify tax assessment and reduce compliance costs.

“We want to simplify our tax system so that everybody will be captured. We are expecting to bring on board 2 million people. We want to widen the tax net,” she said.

The GRA hosted a tax education seminar with faith-based organizations in the Ashanti region as part of activities geared towards mobilizing more revenue from the informal sector.

Many players in the informal sector are failing in their tax obligations, mainly due to the complexity of the tax system.

Ms. Boateng explains the categories expected to be captured under the new tax regime.

“For the first category, it is going to be paid in instalment. This is going for those selling on tables. With the second one, we look at the turnover for the year from 20,000 to 500,000 cedis then add 3% to it and spread it over the four quarters for payments,” she said.

Through its tax education program for the month of August, the GRA engaged traders, and other stakeholders in a series of dialogue to enhance voluntary tax compliance.

Ms. Boateng charged religious leaders to encourage members to honour their tax obligation for national development.

“If the church is operating businesses like printing press or book shop, they ought to pay taxes. We realize those who sell at the various market centres are the very ones that go to church and mosques. So, it is prudent we engage the religious leaders to encourage their members to honour their taxes,” she added.

Chief Revenue Officer at the Kumasi Collection of the Customs Division, Evans Teye Agbozo assures of transitioning from robust to more friendlier transactions.

“This year is our customer-based strategy where we are moving from that robust way of dealing with taxation to a more friendly approach in transacting,” he said.

While assuring to oblige the tax payments, participants at the program anticipate purposeful use of the collected revenues.

“It is expedient for us as clergy to educate our people to pay their taxes just as they do with their tithes. But if these mobilized revenues could be utilized effectively, I think paying wouldn’t be a problem,” one of the participants said.

This is in addition to the 14 currently being enforced in Ghana.

According to Mr Nuer, six of the agreements are pending Parliamentary ratification, five are still being negotiated (Hungary, Israel, UAE, Korea, and Egypt), while five more have been concluded but are yet to be signed.

Furthermore, while discussions have begun on three others, three more are being renegotiated.

“We are renegotiating them because although they were negotiated a while back – some more than 20 years ago, they were not ratified. Things have changed then, such as models which are now outmoded so we need to renegotiate them and bring them up to date”, he remarked during a UK-Ghana Chamber of Commerce (UKGCC) and PwC Ghana webinar on Tax Residency Rules in Ghana: Preparing Multinationals for Compliance”.

These treaties, once they come into force, will provide relief from double taxation, reduce tax rates based on negotiated agreements, provide exemptions to companies such as foreign airlines and shipping companies, and provide access to Mutual Agreement Procedure (MAP) for dispute resolution among others.

However, for a person to benefit from these treaty agreements, the person must be a resident of Ghana, a resident of the treaty partner, or both; be a beneficial owner of the income, and meet any limitation of Benefits (LOB) or Entitlement to Benefits provisions contained in the treaty, where applicable.

Defining Ghana’s Corporate Tax Residency Rules

Tax residency is an important aspect of taxation for both individuals and entities, determining which country has the right to tax individuals’ worldwide income.

In Ghana, the Income Tax Act 2015 (Act 896) imposes taxes on the total income of ‘Resident Person(s), including companies, from all sources (domestic and foreign).

According to Michael Adu-Owusu, the Head of CRS Compliance & Enforcement at Exchange of Information (EOI) at the Ghana Revenue Authority, a ‘company’ is one that is incorporated under the laws of Ghana (Companies Act 2019 (Act 992), with the management and control of its affairs being exercised in Ghana at any time during the year.

Through this arrangement, the income tax act establishes what is termed as a Permanent Establishment (PE). A PE is an entity separate from its owner and subject to tax under Section 1 in the same manner as a resident company, if the PE is a Ghanaian permanent establishment.

A Ghanaian PE is a place in Ghana where a non-resident person carries on business, or engages in a construction, assembly or installation project for ninety days or more.

Activities of a PE encompass when an owner of a company employs an individual resident in Ghana or makes a sale of trading stock of the same or a similar kind as those sold through a PE.

“So, the extent that this rule apples, the entity will be considered to be PE and the tax rule will apply accordingly’, Mr. Adu-Owusu said.

A company may also be deemed taxable based on its Place of Effective Management (PoEM). PoEM is the place where key management decisions that are necessary for the conduct of the entity’s business as a whole are in substance, made.

Some factors to be considered in determining PoEM include the place where the CEO and other senior executives usually carry on their activities.

Tax Residency Status and Challenges with Compliance

A company operating in Ghana can fall between a PE and a PoEM.  This can lead to challenges complying with the tax laws.

For instance, Godwin Kofi Matachor, a Senior Manager in International Tax and Transaction Services with EY Ghana and a speaker during the webinar, highlihted that it is often challenging to properly label foreign companies who only set up liaison offices in Ghana, in lieu of manufacturing or providing any service. This makes their tax obligations as either PE or PoEM difficult to determine.

Mr. Nuer, in response, urged tax payers to consult the Commissioner General of the GRA to determine their status.

“It is always important to talk to the GRA. Once your concerns get to the GRA, there are several tests that would be applied and if it is determined, for instance, that you are a PE, the company would have to file a return and make some payments”.

Mr. Nuer stressed further that, “Your residency determines how you are taxed. It doesn’t change your liability to tax. That is why, if we’re not sure, we use the mutual assistance programme to determine where you should pay the tax”.

However, in the absence of a Double Taxation treaty, a foreign tax credit system (FTC) is used. FTCs, Mr. Nuer said, reduce tensions that may arise due to misconceptions in double taxation cases.

Resolving International Tax Issues

Mr. Nuer revealed that the UN Model Convention is currently being revised to set up a framework convention on international tax cooperation, as well as establish protocols on how the framework will operate.

The revision will synthesise and harmonise double taxation agreements across various jurisdictions to eliminate different considerations of what constitutes a resident company from one jurisdiction to the other.

Mr. Nuer was optimistic that “In the next few years after these things are completed, we will get a good idea of what to expect”.

While Mr. Nuer does not expect the rules to change much, he expects that the revised convention will harmonise existing double taxation issues to enable multinationals easily comply with Ghana’s tax residency rules.

“We will have one set of rules. Ghana will not have a different set of rules different from the UK or the USA. There will be generally some balance in the rules so multinationals can engage comfortably with the GRA.

The Way Forward

Mr. Nuer advised taxpayers seeking further education on DTAs and their commentaries to consult the UN Model Convention.

“We have departed from what the Organisation for Economic Co-operation and Development (OECD) uses. Even though the GRA uses a hybrid commentary, ours is closer to that provided by the UN Model”, he said.

To be generally compliant with Ghana’s corporate tax laws, Mr. Nuer further advised non-resident taxpayers to contact the GRA’s Client Service Unit but “If you’ve been registered for VAT, then it means that automatically, you have a TIN and can therefore use the GRA web portal”, he said.

Mr. Adu-Owusu added that the “GRA’s Client Service is on hand to assist, whether it is IT related, legislation, misunderstanding, or whatever the issue is, it will be duly addressed for you to conveniently comply with the laws and pay your taxes”.

The webinar, moderated by PwC Ghana’s Christiana Osei-Mensah, discussed a range of related topics including the payment of final withholding taxes in non-resident cases, DTA tax rates, how to access DTA treaty benefits, and how a change in residency status affects tax obligations and compliance.

Yvonne Nikoi, Head of the Accounting and Taxation Department of Minkah-Premo, Osei-Bonsu, Bruce-Cathline and Partners (MPOBB), also spoke during the event.

According to Commissioner General Julie Essiam, the current Value Added Tax (VAT) structure makes it difficult for individuals and businesses to comply.

She made this call at the 12th Annual International Tax Conference organized by the Chartered Institute of Taxation, Ghana.

“These policies must be simple and easy to understand by everyone and all of us. As we look into the future as a revenue authority, we believe that the future tax policies should focus on the simplification of tax handles.”

“For example, we must work towards having a simple rate for VAT and avoid the perceived cascaded effect of the simplicity of rates under the current regime,” she added.

She furthered that a review of the policy will greatly enhance compliance among private-sector businesses.

“Tax policies must therefore be flexible enough to grow and optimize tax revenues in tandem with private sector development.”

Ghana is under pressure to improve its domestic revenue inflows. The current economic challenges and the country’s inability to raise funds from the international capital market have made it imperative to boost domestic revenue generation.

The Ghana Revenue Authority (GRA) announced in July 2024 that it collected GH¢68.05 billion for the first six months of 2024, exceeding its mid-year target by GH¢138.69 million, representing 0.2 per cent excess collection by the authority.

Businesses advocate review of VAT

Business associations, including the Ghana Union of Traders Association (GUTA), ad the Association of Ghana Industries (AGI) have consistently called for a review of the current VAT system describing it as disincentive to the private sector.

GUTA has partly blamed the current VAT system on the price hikes in the market.

CIT input

On his part, President of the Chartered Institute of Taxation, George Ohene Kwatia advocated for a national tax policy to harmonize activities in the sector.

He maintained that this would help support political parties and streamline tax policies.

“If you have a true national policy, it will drive the tax agenda. This will serve as a guideline for every government that comes to power. This will avoid frequent changes in our tax regimes based on the government in power.”

12TH Annual International Tax Conference

The conference was organized by the Chartered Institute of Taxation, Ghana.

It aims to create a unique platform for policy makers, academia and tax professionals to share ideas on improving the country’s tax regime.

It encourages conversations on the development and implementation of tax reforms which creates an enabling environment for businesses to thrive.

The 3-day conference, which ends on August 23, 2024, is on the theme ‘Balance tax policy and private sector development’.

The OSP has requested the unedited footage of the documentary to facilitate a thorough investigation into alleged bribery and corruption involving some staff of the Customs Division of the Ghana Revenue Authority (GRA).

The OSP becomes the third public institution to respond to the documentary, following reactions from Parliament and the GRA.

Porous Borders showcased real-time footage of corrupt activities by some customs officials at Ghana’s eastern border.

In the wake of the documentary’s release, the Customs Division of the GRA announced on July 31 that it had assembled a team to investigate the corruption claims. Parliament also reacted, with Yusif Suleiman, Ranking Member on the Trade and Industry Committee and MP for Bole-Bamboi, describing the country as “sick” after viewing the exposé.

On August 2, 2024, the Special Prosecutor confirmed the commencement of an investigation into the allegations in the documentary.

The office has formally requested the documentary’s unedited recordings to support its inquiry.

Additionally, the documentary producers have been invited to assist with the investigation as witnesses.

This was revealed during an engagement at the Public Accounts Committee sitting on Monday, July 29, by officials of the GRA.

While some of these entities are viable and have shown an intention to pay, the Committee raised concerns about redundant ones like the Tema Oil Refinery (TOR).

A GRA official noted, “GACL and Graphic Corporation currently have cash flow challenges. They’ve indicated to us that we need to give them a moratorium to be able to come back to us. So, for them, they are prepared to pay once their cash flow improves.”

Minister of State at the Finance Ministry, Abena Osei Asare, speaking about companies that are unlikely to pay their taxes, stated, “Mr. Chairman, we have done this before. We brought it to Parliament; we went through a process and brought some to Parliament for Parliament to write it off.”

“If it becomes necessary after all avenues to collect these monies have failed, we will go through that process and then come to Parliament for permission to do that.”

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