GRA Begins Implementing New Tax Reliefs

The Ghana Revenue Authority (GRA) has began the implementation of six (6) tax reliefs which were introduced in the 2022 Budget Statement and Economic Policy of Government. The primary aim of the various tax reliefs is to help alleviate the burden of the COVID-19 pandemic on businesses and promote job creation.

The tax reliefs include:
1. the exemption of individuals whose annual incomes are up to GH¢4,500 – GH¢375 a month – from paying taxes;
2. the suspension of the payment of Vehicle Income Tax (VIT) on selected vehicles, including intracity commercial vehicles (trotros and taxis and intercity/long distance buses);
3. a fifty percent (50%) reduction in withholding tax on gold exports by small scale miners;
4. the limitation of the application of the flat rate Value Added Tax (VAT) scheme to businesses whose annual turnover is up to GH¢500,000, an increase from the GH¢300,000 threshold for the tax;
5. the waiver of interest and penalty on tax arrears for all categories of taxpayers; and
6. the exemption of local textile manufacturers from paying VAT.

It is GEA’s hope that the above tax reliefs will increase the market share of domestic manufacturers, increase employment by small and medium sized businesses, and encourage individuals and businesses to fulfill their tax obligations.