Since the assumption of power on the 7th of January 2017, President Nana Addo Dankwa Akufo-Addo’s and the 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:
- 3% VAT FLAT RATE
- 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.
- 5% financial sector clean-up recovery levy.
- 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B. First term (2017-2020) taxes that were imposed on Ghanaians, collected and later withdrawn:
- Luxury vehicle tax (GH¢1,000 to GH¢2,500 depending on engine capacity of vehicle)
- 50% increase in Communication Service Tax (CST)
C. New taxes introduced in the year 2021 by the Akufo-Addo/Bawumia government:
- 1% COVID-19 levy on 3% VAT flat rate, making it 4% now.
- 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.
- 5% financial sector clean-up recovery levy.
D. NEW TAXES IMPOSED ON FUEL PRICES in 2021
- 20 pesewas Energy Sector Recovery Levy on every liter of diesel and petrol
- 10 pesewas Sanitation levy (“Borla”) tax on every liter of diesel and petrol
- 18 pesewas energy sector recovery levy on every kilogram of LPG
E. INCREASES IN EXISTING TAXES/LEVIES ON FUEL PRICES FROM 2017 TO DATE:
- 30% increase in Energy Sector levies (ESLA), extended beyond its original duration of 5 years to now 15 years.
- About 11% increase in Special Petroleum Tax (from 41 pesewas to 46 pesewas) on every liter of diesel and petrol.
- 200% increase in BOST MARGIN from 3% to 9%.
- 67% increase in Fuel Marking Margin (from 3 pesewas to 5 pesewas) per liter of petrol and diesel.
- 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)
- 25% increase in Primary Distribution margin from 8 pesewas to 10 pesewas.
- 36% increase in Unified Petroleum Price Fund (UPPF) from 22 pesewas to 30 pesewas.
- 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.
2023
- Excise Duty Amendment Bill 2022
- Growth and Sustainability Levy Bill, 2022,
- Ghana Revenue Authority Bill 2022
- Income Tax Amendment Bill 2022
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