The TIN, according to the GRA, is aimed at uniquely identifying potential taxpayers to broaden the tax base.

The Authority has, in recent times, announced that all Ghanaians working must acquire a TIN to fulfill the Revenue Administration Act (RAA), 2016, Act 915.

Some of the institutions that will require TIN are the DVLA, RGD, Passport Office, GRA, Lands Commission, Law Courts, Ministries, government departments, agencies, metropolitan, municipal and district assemblies.

Addressing journalists at a press conference, the Commissioner-General of the GRA, Emmanuel Kofi Nti warned that institutions mandated to check the TIN must do so before transacting businesses with the public.

“One cannot transact business with these institutions if one does not have the TIN. One cannot clear goods from the ports, register land documents with the Lands Commission, obtain a Tax Clearance certificate from the  GRA, open a bank account, register your company, and obtain payments for jobs or contracts done for government,” he stressed.

He added that without the TIN, a person cannot file a case at the courts, bid for contracts from government agencies, conduct business with any ministry, departments, agencies, metropolitan, municipal and district assemblies.

Mr. Nti explained that this is to help increase the number of people currently issued with TIN; a total of 1,090,338 people.

He disclosed that the GRA has already held series of meetings with the key institutions that must help inspect the TIN to ensure the smooth operations of the policy.

“These institutions have been requested to modify their forms to include a field for the provision of TIN. Consequently, GRA expects the institutions mentioned above to demand the TIN of their clients before transacting business with them,” he said.

Sounding a word of caution, Mr. Nti stressed that refusal to inspect the TIN will mean a breach of the law, which will attract the necessary consequences.

He explained that to get the TIN, “one only needs to pick a registration form from any GRA Office, complete and attach the necessary coloured photocopies of a Driver’s license, National Identification Card, Voter’s Identification Card, or a passport and submit at  no cost to the GRA.”

He stated that it is important for Ghanaians to pay their taxes since that is the only way government can redistribute wealth to cover the poor and vulnerable in the society.

“I think we must be tax compliance because that is the only way we can be part of the state and demand development from government. Everybody working must make it a point to pay their taxes.”

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By: Lawrence Segbefia/citibusinessnews.com/Ghana

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The action came after the company persistently failed to comply with demand notices served on it.

The Reverend John Yaw Boabeng, Chief Revenue Officer in charge of the Recovery, Debt Management and Enforcement Unit, said the company had 10 working days to make a satisfactory payment arrangement with the GRA and anything short of that would result in legal action to recover the amount owed.

The tax liability represents value added tax (VAT), company income and withholding taxes for the period of 2013 to 2016.

The Rev Boabeng said enough time was given to the defaulting company to settle the amount but it would not take advantage of that.

“The audit has long been completed; the taxpayer has been given the opportunity severally to pay.

We served him a notice of tax liability, another notice and then final demand notice and he would still not respond.”

The GRA, therefore, had no option but to close the offices.

He reminded tax defaulters that the more they delayed in making the payment, the higher the penalty.

“Of all the taxes computed – company income tax, VAT, and the withholding taxes, once there is a delay in payment, there will be interest and penalty”.

He noted that Africa Central Cargo had not shown the commitment to settling its liability.

He called on those who had defaulted in their tax payments to take steps to arrange to settle their tax liabilities or be prepared to face appropriate sanctions.

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Source: GNA

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The decision was arrived at after extensive consultation between the government and various stakeholders.

[contextly_sidebar id=”EWlGK1fFMcmxK8eRP7hFpxfGsV7uN27P”]Citi Business News understands that the charges had been implemented since the 1^st of March this year.

The traders of such commodities comprising mobile phones, day old chicks, outboard motors and electrical transformers, have resisted the taxes citing the high cost of operation.

Government has also ordered the indefinite suspension of the proposed fumigation levy for shippers. The policy, was aimed at fumigating all imported cargo upon arrival at the ports.

A statement signed by Information Minister, Mustapha Hameed and copied to Citi Business News confirmed the suspension.

“The Ghana Revenue Authority (GRA) suspends with immediate effect, the charging of import VAT on the 64 commodity groups which started on March 1, 2018, leading to an unintended hike in import charges,” it said.

It also indicated that it is pending an assessment of Harmonized code for customs which were reviewed on March 1^st, 2018.

On March 1, 2018, government rolled out two tax policies; the excise tax stamp and the Harmonized ECOWAS Common External Tariff (CET).

Tax Stamp requires that Excise Tax Stamps should be fixed on specified excisable products to enhance security and tracking features on those products.

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.

Some economists have suggested to Citi Business News 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.

Read the full statement below;

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Govt suspends import VAT on phones, day-old chicks, others appeared first on Citi 97.3 FM - Relevant Radio. Always.

This is the estimation of consumer rights group, CUTS Ghana.

The group maintains that tapping into the potential should bridge the perennial revenue collection deficit that faces the country.

The persistent issues of high cost of collection, absence of reliable database as well as fraud perpetrated by tax collectors have been cited as concerns impeding the collection of property rates in Ghana.

The issue has also impacted the internally generated revenue of district assemblies hence having a toll on the national budget.

The Country Director for CUTS Ghana, Appiah Adomako Kusi stressed the relevance of the property rate to Citi Business News.

“One area that we have been able to identify is property rates where we realize most assemblies are unable to collect because of varied reasons and our conservative estimates suggest that we can raise not less than 5 billion cedis annually from property rates.”

“This could also be used to finance projects at the district levels which will also by extension means tthta the overreliance on the District Assembly Common Fund (DACF) or Accra for funding is going to be reduced,” he added.

For this year, government is seeking to raise an estimated 51 billion cedis in revenue.

As a result, the Finance Minister has outlined major policy initiatives aimed at achieving this target.

These largely include the enforcement of the excise tax stamp policy, introduction of Tax Amnesty as well as new laws to enforce compliance on tracking financial proceeds of businesses operating in Ghana and elsewhere across the globe.

The ultimate aim is also to achieve what the government describes as Ghana Beyond Aid which will reduce the over dependency on donor support for major infrastructural developments.

Mr. Adomako Kusi believes this is also possible if the government through the Ministry of Finance enforces property rate collection.

This will also mean Ghana will improve its tax to GDP appreciably.

“Largely, Ghana as a country has not been able to do well when it comes to revenue mobilization. Our tax to GDP ratio is less than 17 percent; when you compare that to OECD countries, it averages around 43 percent that means that if we want to develop, then we should be able to raise taxes locally.”

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Ghana losing GH¢5bn in property rates annually – CUTS Ghana appeared first on Citi 97.3 FM - Relevant Radio. Always.

The situation is expected to lead to possible shortages and eventual increase in prices, if authorities fail to step in.

The warning is the latest from the Food and Beverage Manufacturers’ Association of Ghana.

It also comes after the closure of two companies; Aqua Fill and Multi pac producers of bottled water and fruit juices respectively.

The Executive Secretary of the Association, Samuel Aggrey tells Citi Business News the members have been overburdened with the latest directive hence the action.

“Unfortunately government is not heeding to that and is still standing on its position expecting that people should invest between one hundred and fifty thousand and millions of dollars to get these machines installed,”

“…If I don’t have the resources to install those machines then I will be found wanting by the law. The two companies that have shutdown have done so until they have their way clear. I can tell you that others are waiting to follow suit because no company would want to be found wanting.”

Meanwhile Mr. Aggrey has also not ruled out possible increase in prices of some products due to the cost in fixing the stamps at the designated centers.

“Because we don’t have the machine, you need to transport your wares from you factory wherever you are in the country to Tema for them to fix the stamps for you. When you get to Tema, the facility can only accommodate a 20 footer container that can only work for about 6 hours a day. So you can just imagine the number of containers that will be lined up to get this facility to get their stamps affixed. So if their going by rationing, the competition that will be created between these industries will be huge,” he lamented.

The enforcement of the excise tax stamp has been in operation since March 1, 2018.

According to the Ghana Revenue Authority, the decision is to deepen compliance with tax payments and combat tax evasion.

The development has also been viewed by some as means by the government to shore up its revenue following the revenue shortfall it recorded in 2017.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Tax stamp: Two companies shut down, more to follow appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Standard for Automatic Exchange of Financial Account Information Law will allow the Ghana Revenue Authority (GRA) to request for tax information on the operations of such business that happen outside Ghana.

This means the GRA will compel financial institutions outside Ghana if they are convinced of instances of tax evasion by an investor who also operates in Ghana.

The new Bill comes at a time that the government has outlined a massive plan to clamp down on tax evasion and improve revenue collection.

A Deputy Finance Minister, Kwaku Kwarteng justified the passage of the law during the debate at the second reading of the Bill on Tuesday, February 27, 2018.

“If we implement the formal reporting standards by imposing on the financial institutions an obligation to report information regarding the financial accounts of responsible individuals or entities to the Ghana Revenue Authority after conduct of due diligence with respect to those accounts,” he argued.

Mr. Kwarteng added, “Mr. Speaker what this Bill is therefore seeking to do is to create the framework in which this exchange of information will happen in an orderly, properly regulated way.”

The Standard for Automatic Exchange of Financial Account Information was first laid on the floor of the House in December last year (2017).

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Parliament to pass another law to track tax evasion appeared first on Citi 97.3 FM - Relevant Radio. Always.

March 1, 2018 looks set to be a date importers will wish never came. On that day, two new tax policies will be out doored- the excise tax stamp and the Harmonised ECOWAS Common External Tariff (CET). Importers have asked for leniency. But a third levy for fumigating containers and their contents is in the works.

This is a tough balancing act for the country’s finance minister, whose basket of promised social goods need sufficient cash, but at the same time he needs to ensure the private sector is not unnecessarily overburdened to achieve the political goals.

It does seem until the local business environment is deliberately induced to boost domestic enterprise and manufacturing that can compete with basic goods and services we import, there would only be the option to tax the joy out of import business. That is assuming all the taxes so imposed go into the government’s vaults. Recent records of a 34.5% year–on-year increase in port revenues could actually be double had the processes accompanying the paperless system been fully deployed by port officials.

Im anycase, the fortunes of the importer may actually be dwindling with yet another Fumigation tax. The cargo fumigation levy had been contemplated under the previous administration which did not see the light of day because of a change in government. Now though it has been given full support by the current administration- The fumigation of cargo is to be undertaken by a Turkish company- The Turkish company is the service provider with the Shippers Authority as client and the Ghana Health Service as health regulator.

All stakeholders in the import business, especially freight forwarders have been served notices to register online by March 1, 2018 in order to pay $5 per each passenger car imported and disinfected. All other vehicles will pay $10 each. It is envisaged that all containers for imports and exports will be subjected to similar unspecified fees and could be higher. These charges DO NOT include VAT or any other tariffs government may impose.

There is nothing essentially wrong with disinfecting cargo as disease agents can be transported to hitherto safer environments. However, it is important to ask the critical question of how unique this service is that it merited a sole-sourced procurement process which imposes very unfair terms on government’s agencies and by extension on importers. The fees seem to have been solely determined by the service provider.

Article 4.9 of the agreement states ‘’ The Ghana Shipper Authority shall ensure that the SERVICE PROVIDER is placed on the existing mandatory electronic platform for the collection of fees and charges that have been determined by the SERVICE PROVIDER to ensure that all imports and exports subject to the GRA Customs regime pay the fees stipulated in this Agreement’’.

The contract says that the service provider of the fumigation services shall conduct business at our existing ports, and any other ports we will build in the future for the next 25 years with an option for a 10 year extension. The demand for extension is skewed in favour of the service provider even as we are yet to determine its capacity.

Sadly, the parties to this contract ‘’acknowledge that the service provider shall NOT be liable for any outbreak of foreseen or unforeseen epidemic, diseases, etc’’ Rreference article 3.7 of the agreement). Surprisingly, the agreement states that ‘’ the service provider has the right to assign, transfer all or in part of any of its rights arising out of this agreement’’.

For a country that purports to be interested in ensuring skills transfer and some amount of local content, it is sad that a service that is not unique to be provided by an external company under these worrying circumstances certainly is a call to death of budding and experienced local enterprises.

There is more, but suffice to say that when this project was contemplated under the previous government, the Attorney-General then, Mrs., Marietta Brew Appiah-Opong cautioned the then Ministry of Health in her legal opinion about the excesses related to parliamentary approvals, fees and charges , responsibility for externalities such as disease outbreaks and crucially the duration of the contract.

Mrs. Brew Appiah-Opong offered economically sound advice on how to proceed with the agreement to ensure Ghana’s public private partnership and local content mantra was given a befitting facelift with this project. I agree with her legal opinion. I am not sure her opinion was factored into the June 23, 2017 agreement under the new government. I am not sure the current Attorney-General, Ms. Gloria Akuffo has seen this agreement. If she hasn’t she should. Officials of IMANI are still demanding answers from those who signed this contract.

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Source: IMANI Ghana

The post IMANI Ghana raises concern over imports, exports fumigation levy appeared first on Citi 97.3 FM - Relevant Radio. Always.

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.

The CEO of PEF, Nana Osei Bonsu explains that the current regime has impacted adversely on businesses due to delayed payments for the provision of services or sale of products to clients.

He tells Citi Business News the issue has also compelled most of them to resort to loans to meet their tax obligations hence increasing their cost of doing business.

“Government most of the time does not allow them enough time to collect what they are responsible to transmit so they have to use their own income to be able to remit to government which is eroding their working capital. Sometimes they have to borrow from the financial institutions at a cost,” Nana Osei Bonsu asserted on the sidelines of a tax seminar on the new Amnesty Law.

Businesses, particularly Oil Marketing Companies (OMCs) are affected the most under the current tax remittances regime.

Per law, they are expected to remit their taxes within the first twenty-one days of the month (by the third week) of the month.

But Nana Osei Bonsu believes this must be revised and if possible, discount to such businesses.

“So that is why we are thinking that the government should look into the burden on them as to the collection and remitting. If anything at all, the government could give them discounts for the services that they render because they have to get employees and all that before they remit,” he added.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post PEF seeks revision of upfront tax payments appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to them, they have not been properly integrated into the implementation processes hence the need to address their concerns before the implementation of the policy.

“Our engagements with government to reconsider its position if it comes to the tax stamp, have all yielded no results but rather the government wants to go in tandem. So we ask ourselves are we ready to really affix the tax stamps? If not, then what are we going to do on the first of March?” Executive Secretary of the Food and Beverages Association of Ghana, Samuel Aggrey queried.

The excise tax stamp is scheduled to take effect on 1st March, 2018; barring any last minute change.

At a press conference to voice out their displeasure, Mr. Aggrey further said the beverage industries are ready to withdraw their services and close down their businesses until their concerns are addressed.

“If GRA or government insists that those who have not affixed the stamps on their products should withdraw them from the market, industries are ready to do that. But if we want to be smart enough, then we will ask the implementers to withdraw and as a matter of urgency suspend this tax stamp implementation,” he declared.

Although the business associations stated clearly they are not against the tax stamp policy, the argued that the method being introduced will only end up adding undue cost to their operations which will eventually makes production completely counterproductive.

About the Excise Tax Stamp

The Excise Tax Stamp Act 2003 (Act 873) was passed by the parliament of Republic of Ghana in December 2013, ostensibly to enable the Ghana Revenue Authority (GRA) enforce the affixing of Excise Tax Stamp on specified excisable goods before they are delivered and cleared from the ports for sale.

The tax stamp received presidential assent in January 2014.

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

The post Beverage manufacturers want tax stamp suspended appeared first on Citi 97.3 FM - Relevant Radio. Always.