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NEW TAXES INTRODUCED BY PRESIDENT AKUFO-ADDO’S GOVERNMENT

April 8, 2022
3 years ago
Adaora Okonkwo Avatar

KUSAUG360 NEWS HUB
Blogger and IT Technician
NEW TAXES INTRODUCED BY PRESIDENT AKUFO-ADDO’S GOVERNMENT

President Nana Addo Dankwa Akufo-Addo’s New Patriotic Party government has introduced some new taxes since coming into power.

A. New taxes introduced by the Akufo-Addo/Bawumia government during their first term (2017-2020) which Ghanaians are paying till date include:

  1. 3% VAT FLAT RATE

     

  2. 5% increase in VAT by making the GETFUND levy and NHIL straight taxes.

  3. 5% National Fiscal Stabilization levy (extended beyond expiry date of 2017)

  4. 2% Special import levy (extended beyond expiry date of 2017)

B. First term (2017-2020) taxes that were imposed on Ghanaians, collected and later withdrawn:

  1. Luxury vehicle tax (GH¢1,000 to GH¢2,500 depending on engine capacity of vehicle)

     

  2. 50% increase in Communication Service Tax (CST)

  3. C. New taxes introduced in the year 2021 by the Akufo-Addo/Bawumia government:

  1. 1% COVID-19 levy on 3% VAT flat rate, making it 4% now.

     

  2. 1% COVID-19 levy on the 2.5% National Health insurance levy, making it 3.5% now.

NB: These two taxes are indirect taxes that are paid by consumers and therefore all Ghanaians.

  1. 5% financial sector clean-up recovery levy.

D. NEW TAXES IMPOSED ON FUEL PRICES in 2021

  1. 20 pesewas Energy Sector Recovery Levy on every liter of diesel and petrol

     

  2. 10 pesewas Sanitation levy (“Borla”) tax on every liter of diesel and petrol

  3. 18 pesewas energy sector recovery levy on every kilogram of LPG

  4. E. INCREASES IN EXISTING TAXES/LEVIES ON FUEL PRICES FROM 2017 TO DATE:

  1. 30% increase in Energy Sector levies (ESLA), extended beyond its original duration of 5 years to now 15 years.

     

  2. About 11% increase in Special Petroleum Tax (from 41 pesewas to 46 pesewas) on every liter of diesel and petrol.

  3. 200% increase in BOST MARGIN from 3% to 9%.

  4. 67% increase in Fuel Marking Margin (from 3 pesewas to 5 pesewas) per liter of petrol and diesel.

  5. 40% increase in Price Stabilization and Recovery Levy on fuel products (from 10 pesewas & 12 pesewas on petrol and diesel respectively, to 14 pesewas and 16 pesewas on diesel and petrol respectively)

  6. 25% increase in Primary Distribution margin from 8 pesewas to 10 pesewas.

  7. 36% increase in Unified Petroleum Price Fund (UPPF) from 22 pesewas to 30 pesewas.

  8. Increase in Road Fund Levy from 46 pesewas to 48 pesewas on every liter of diesel and petrol.

ELECTRONIC TRANSFER LEVY TAX

Introduction of 1.5% Electronic Transfer Levy Act, effective 1st May, 2022.