Head of the Ghana Revenue Authority’s (GRA) Excise Unit, Mr. Kwabena Apau Awua Anto, has revealed that the Authority will soon enforce the Excise Duty law that requires manufacturers of excisable goods to issue a bond or security.
Speaking during the UK-Ghana Chamber of Commerce’s (UKGCC) and PwC Ghana webinar on Compliance for Businesses in Ghana under the Excise Duty Act 2024 (Act 878) & Excise Duty (Amendment) Act 2023 (Act 1093 and Act 1108), Mr. Anto explained that the law would now be rigorously enforced because bonds provide critical information on “the quantity of excisable goods to be produced, the amount of excise duty to be collected, and the date by which excise duty will be paid.”
He further explained that, excise duties are imposed on goods to discourage certain behaviours, reduce consumption and curtail non-communicable diseases such as hypertension, diabetes, and others.
“In the last amendment 1093, excise duty on sweetened beverages and fruit juices was introduced. It was aimed at making the product a bit expensive so consumption of these products can be reduced, their consumption of which cause health problems.”
“It is also used for the redistribution of wealth. You can impose excise duty on products patronized largely by the affluent to benefit society”.
According to Mr. Anto, the current amendment of the Excise Duty Act “introduced a hybrid excise duty rate on tobacco products and for every stick of cigarette, the excise duty rate of 28pesewas is applied, together with ad valorem rate of 50% of the ex-factory rate or if imported, the value applicable to it at the ports.
The excise duty rate for beers and malt drinks are affected by a sliding scale policy where manufacturers, depending on the quantity of local raw material used for the manufacture of beers and malt drinks, are granted concessionary duty rates.
Fruit juices, on the other hand, attract a standard excise duty rate of 20% whether locally manufactured or imported.
Other excisable products are pharmaceuticals and textiles (domestic/African prints) which are zero-rated, plastic and plastic products, and petroleum products.
Mr. Anto remarked that registration is the beginning of the compliance process therefore manufacturers of excisable goods who fail to register with the GRA would pay twice the amount of duty or GH¢500-1000, while manufacturing outside a warehouse attracts twice the amount of duty.
Other offences such as failure to submit a return attract a fine of GH¢500 in addition to GH¢10 per day, while failure to pay tax on the due date attracts 15% of duty in addition to interest of 5% for each day of default.
