The decision comes on the back of a monitoring exercise on the compliance of the tax stamp policy beginning today, 1^st March 2018.

The tax stamp has been met with stiff opposition from key business associations who say they are unable to bear the additional cost of fixing the stamps.

But the GRA insists the policy is necessary to stop tax evasion.

Citi Fm‘s Anita Arthur was part of a monitoring team and reported that a visit to Shoprite at Osu Mall showed that a majority of imported cigarettes as well as alcoholic and nonalcoholic beverages had the tax stamp on them.

The situation was however the opposite with locally manufactured drinks which did not have the tax stamps on them.

When questioned about why the locally produced products did not have the tax stamps, the Operations Manager at the Osu Mall, Paul Adamson explained as,

“I believe the reason why most of the shops have not yet acquired the tax stamp especially on the local products is because they feel enforcement has been weak. However with this exercise GRA is doing, the shops will no longer hesitate to acquire the stamps and put them on their products.”

The team then moved to Airport Shell, Koala and then to Accra Mall where they visited Shoprite and Game.

Mr Kwabena Donkor advised all of them to acquire the tax stamps as soon as possible to avoid having their products confiscated and destroyed.

Goods expected to be affected by the excise tax stamp include cigarettes and other tobacco products, bottled or canned alcoholic beverages and nonalcoholic carbonated beverages as well as bottled water.

About Tax Stamp

In accordance with the Provisions of the Excise Tax Stamp Act, 2013 (Act 873) specified excisable products which are imported or locally produced, are required to be affixed with Tax Stamps with specific features designed and supplied by the Ghana Revenue Authority before they are delivered ex-factory, cleared from any port of entry or presented for sale at any commercial level in Ghana.

As part of measures to ensure the smooth and effective implementation of the Tax Stamp programme, all importers and manufacturers of the affected products are required to register with the Ghana Revenue Authority (GRA).

The registration is mandatory under section 4 of the Act and it shall among others, enable GRA grant user access to the Tax Stamp Portal to the registered taxpayers for the administration of the programme.

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By: Anita Arthur/citibusinessnews.com/Ghana

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This is because some new tax policies are set for implementation beginning next month; March.

The two new tax policies to be rolled out are the excise tax stamp and the Harmonised ECOWAS Common External Tariff (CET).

Tax Stamp does not intend to introduce a new tax. It rather requires that Excise Tax Stamps should be fixed on specified excisable products to enhance security and tracking features on those products.

The stamps will also serve as preliminary evidence of payment of required duties and taxes on the selected products.

It will also provide an audit trail for tracing importers and manufacturers of counterfeited goods where necessary.

The excise tax stamp will affect businesses that are engaged in the importation or manufacturing of excisable goods such as canned or bottled drinks, non-alcoholic carbonated beverages, cigarette and tobacco products.

On the other hand, the Harmonised ECOWAS CET will affect importers of goods classified under the CET.

Although the CET is being implemented at the ports, Citi Business News understands that an international review of the system has led to the addition of new products such as tripod which attracts 20 percent tariff to be borne by importers of the product among others.

Citi Business News has been speaking to some economists and they suggest that the move has become apparent as government is expected to rake in enough revenue to provide funding for some key government projects such as the free Senior High School programme.

Click to listen to the full audio report.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Government hits businesses with new tax policies (Audio) appeared first on Citi 97.3 FM - Relevant Radio. Always.

This is contrary to some concerns being raised by businesses at the ports that the policy has a potential threat to the efficiency of the paperless clearing process.

The excise tax stamp involves the fixing of stamps on all excisable products.

This also includes all such goods that are imported through the various entry points across the country.

The decision is to clamp down on tax evaders.

“With the current procedure we have, if you bring your goods normally, you will go through the clearance procedure and get cleared normally. But as I said it will be in your interest to ensure these are goods you’ve paid taxes and duties. Because you have paid duties and taxes, so as not to encounter any issues you’ll try to approach us to affix the stamp. Otherwise, when it comes to the point of verification you will have issues,” the Technical Advisor to the Commissioner at the GRA, Sam Akwesi Nyankyera told Citi Business News.

The policy has since Tuesday, January 2, 2018, been in operation at the Tema port as well as three other inland borders in the Volta region.

They are the Aflao, Kpoglo and the Akanu border points.

According to Mr. Akwesi Nyankyera, the automated systems should rather fast track the process.

“The GRA has contracted a service provider to do this. We have some automated machines and we have some manual machines as well to cater for all quantities. We have forklifts and we have a system connected to the clearance system, such that we don’t envisage serious problems. But should we have a serious problem we always have a fallback solution. Since we are involved, we can come up with ad-hoc solutions to address any unforeseen issue which I don’t foresee right now.”

Gov’t starts tax stamp policy amidst boycott

Government has stressed that the excise tax stamp policy will not add unto the tax burden of manufacturers and retailers even as it begins to roll out the policy.

According to the Ministry of Finance, the policy will encourage tax compliance while protecting the consuming public against harmful and unwholesome products.

A Deputy Finance Minister, Kweku Kwarteng earlier explained that his outfit will continue the dialogue to reduce any apprehension.

“All the things that have to be done in order to make this policy work will now be done. These will include; how we affix the stamps, how we engage, which other product we will rope in, among others. All those arrangements would have to be done,” he stated.

Mr. Kwarteng added, “Suggestions such as not having enough consultations yet the ministry is rolling the policy out today, we urge the taxpaying business community to exercise patience and to continue engaging with us as they have.”

Govt subsidises cost of tax stamps

Following the concerns that the implementation of the tax stamp will add unto the cost of production of businesses, the government has initiated measures to reduce the burden.

As a result, the cost of affixing the stamp has been absolved by the government from now till June 2018.

Subsequently, government will be expected to bear at least half of the cost between June and December 2018 until it eventually weans itself from bearing any cost.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

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