The Ghana Revenue Authority (GRA) has confirmed that the seven tax amendments, passed by parliament and endorsed by President Akufo-Addo, will come into effect on January 1, 2024.

The announcement, outlined in a circular published in various newspapers, also stated that the GRA will formulate administrative guidelines and issue notices for the proper implementation of the amendments.

The GRA further specified that payroll deductions for January 2024 must adhere to the new rates stipulated in the Income Tax (Amendment).

The tax amendments, signed into law on December 29, 2024, encompass several bills, including the Value Added Tax (Amendment) Bill, 2023, Excise Duty (Amendment) (No. 2) Bill, 2023, Stamp Duty (Amendment) Bill, 2023, Emissions Levy Act, 2023, Exemptions (Amendment) Act, 2023, Customs Amendment Act 2023, and Income Tax Amendment Act 2023.

The Value Added Tax (VAT) Bill seeks to broaden the tax base, extend the zero rate on locally manufactured products, introduce a zero rate on locally produced sanitary towels, and exempt VAT on the import of electric vehicles for public transportation.

The application of these changes may lead to a significant increase of over 21 per cent in Motor Insurance Premiums.

The amended Excise Duty Bill aims to align the excise duty rate on certain drinks with that of beer, decrease excise duty on plastics, and extend the scope of excise duty on plastics to cover imported plastic packaging.

The Emission Levy Act introduces a levy on carbon dioxide equivalent emissions from specific sectors and internal combustion engine vehicle emissions.

Sectors such as construction, manufacturing, mining, oil and gas, electricity, and heating will incur ₵100 per tonne of emissions per month, while different rates apply to motor vehicles, buses, coaches, motorcycles, and tricycles.

These tax amendments are anticipated to contribute over ₵5 billion to the government's revenue in 2024.