A tax analyst, Francis Timore Boi says the government’s newly introduced taxes will result in the prices of goods and services increasing marginally from May 2021 when they take effect.
The Ghana Revenue Authority (GRA) earlier this week indicated that taxes announced in the 2021 budget will take effect from May 1, 2021.
The taxes include the COVID-19 Health Recovery Levy Act, 2021 (Act 1068) which imposes a one percent levy on the supply of goods and services made in the country other than exempt goods or services, the Financial Sector Recovery Levy Act, 2021 (Act 1067) which imposes a five per cent levy on the profit before tax of banks and the Energy Sector Levy (Amendment) Act, 2021 (Act 1064) which imposes an Energy Sector Recovery Levy of GH¢20 pesewas per litre of petrol/diesel and 18 pesewas per kg on Liquefied Petroleum Gas (LPG) and a Sanitation and Pollution Levy of GH¢10 pesewas per litre of petrol and diesel respectively.
Mr. Timore Boi says the new taxes in the energy sector will have the most impact on consumers.
“This means that from 1st of May, we should see some marginal increases in the prices of goods and services because the taxes are going to be passed unto consumers especially for the petroleum levy that we saw,” he said.
Meanwhile, the GRA in its statement announcing the new taxes indicated that some waivers were being applied to tax payers who meet some requirements.
Francis Timore Boi explained that the waiver of penalties and interest will be applied to persons who pay up their tax arrears up to December 2020.
“It is in a bid to lessen the burden on business so that if you arrange with GRA and you pay the taxes in arrears covering periods up to 31st December 2020, then penalties that have accumulated on the debts will be forgiven. It means that it doesn’t apply to arrears starting from January 2021…It is a form of amnesty.”