3 new taxes is a death warrant to kill businesses — Food and Beverages Association

John Awuni, Executive Chairman of FABAG said the three taxes are very disappointing because a death warrant has been signed for Ghanaian businesses..

He said the new taxes signed is a complete contradiction of the mantra of the government on 1D1F.

The government has shot itself in the foot because you can't say you are prompting industry and then come out with taxes that will kill the industry.

He indicated that issues of industry development remain the same adding that the whole array of taxes that are basically killer, it is shocking.

On Monday, April 17, 2023, President Nana Addo Dankwa Akufo-Addo assented to law the three new tax bills recently passed by Parliament on Friday, March 31, 2023.

The three new taxes are the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill, 2022, and the Income Tax Amendment Bill 2022.

Ghanaians have been reacting to the three new taxes introduced by the government.

Critics believe the bill will price lower-income people and small business owners out of the digital economy.

The bills are expected to generate about GH¢4 billion annually.

The government said the tax bills will shore up revenue domestically and boost Ghana's fiscal position following the shocks of COVID-19 and the Russia-Ukraine war.

Here are the 3 new taxes you need to know about.

Growth and Sustainability Bill

The object of the Bill is to impose a special levy to be known as the Growth and Sustainability Levy to raise revenue for the growth and fiscal sustainability of the economy.

The Levy is to be imposed on profit before tax of companies and institutions and on production in the case of mining, and upstream oil and gas companies.

The estimated revenue for 2023 is approximately ¢2.26 billion. The Levy is subject to review by the Minister responsible for Finance in 2025.

Income Tax Amendment Bill

The object of the Income Tax (Amendment) Bill, 2022 is to amend the Income Tax Act, 2015 (Act 896) to revise the rates of income tax for individuals and introduce an additional income tax bracket, introduce a withholding tax rate on the realization of assets and liabilities and winnings from the lottery, unify the loss carried forward provisions and revise the treatment of foreign exchange losses.

It is also intended to increase the optional rate for individuals on the gain from the realization of an investment asset, revise the upper limits for the quantification of motor vehicle benefits and increase the concessional income tax rates.

Excise Amendment Bill

The object of the Excise Duty (Amendment) Bill, 2022 is to amend the Excise Duty Act, 2014 (Act 878) to revise the excise tax rates for cigarettes and other tobacco products to conform with the Economic Community of West African States (ECOWAS) Protocols and raise revenue to mitigate the harmful effects of these excisable products.

It is also intended to increase the excise duty in respect of wine, malt drinks, and spirits; and impose excise duty on sweetened beverages and electronic cigarettes, and electronic liquids to increase revenue.