[ad_1]
The recently passed Growth and Sustainability Levy Bill is seeking to raise revenue for the growth and fiscal sustainability of the economy.
The memorandum that accompanied the Bill, indicated that the Coronavirus Disease (COVID-19) pandemic led to a significant reduction in revenues and increased expenditure enormously.
This has been compounded by the Russian-Ukraine war resulting in unprecedented global crises, depreciation in currencies and impacted living conditions and inflation levels.
Parliament on Friday, March 31st passed three revenue Bills including Growth and Sustainability Levy Bill as part of measures to raised GHS4billion cedis to support the economy.
The application of this levy is limited to profits before tax or production for the 2023, 2024, and 2025 years of assessment.
This Levy imposes on profit before tax of the companies and institutions and on production in the case of mining, upstream Oil and Gas Companies specified under three different categories as follows:-
Category A – Rate of Levy: 5% on Profit before tax
- Banks
- Non-Bank Financial Institutions
- Insurance Companies
- Telecommunications Companies liable to collect and pay the Communications Service Tax under the Communications Service Tax Act, 2008 (Act 754).
- Breweries
- Inspection and Valuation Companies
- Companies providing mining Support Services
- Bulk Oil Distributors
- Oil Marketing Companies
- Communication Tower Operators
- Companies providing upstream Petroleum Services
- Companies and Institutions registered by the Securities and Exchange Commission
- Specialised Deposit – Taking Institutions
- Electronic Money Issuers
- Shipping lines, maritime and airport terminals
Category B – Rate of Levy: 1% of gross production
Mining Companies and Upstream Oil and Gas Companies
Category C – Rate of Levy: 2.5% of Profit before tax
All other entities not falling within Category A or Category B
[ad_2]
Source link
