The Ghana Revenue Authority (GRA) aims to generate an additional GH¢455 million in revenue by the year's end through the taxation of recently introduced excisable goods, including electronic cigarettes, electronic liquids (shisha), and other tobacco-related items.

The list of taxable products also encompasses a range of items such as beverages, fruit juices, spirits, and wines.

Shisha, commonly referred to as a waterpipe or hookah, is a smoking apparatus. The World Health Organisation has stated that the smoke inhaled during a typical shisha session, lasting about an hour, is equivalent to smoking between 100 and 200 cigarettes.

The GRA has clarified that the imposed levy on the production, sale, and utilization of these goods aligns with the ECOWAS protocol on health taxes, which Ghana is a signatory to.

Edward Gyambrah, the Commissioner of the Domestic Tax Revenue Division at GRA, informed the B&FT publication that the execution of this initiative, which is anticipated to influence revenue streams and consumer behavior, adheres to the new Excise Duty (Amendment) Act, 2023 (Act 1093).

He emphasized that a key facet of the ECOWAS directive mandates that excise duty on tobacco products should incorporate both ad valorem and specific duties.

Timeline:

Starting from September 1 of this year, manufacturers and importers of the affected products must begin adhering to the tax directive. Enforcement at entry points will commence on October 1, 2023. Full implementation of enforcement at the point of sale to consumers, however, is scheduled to commence on January 2, 2024.

Commissioner Gyambrah clarified, "This policy, along with the 10 percent tax on lottery winnings and the implementation of textile tax stamps, holds significant importance for the country's revenue performance."

Other tax handles:

The GRA is actively rolling out several tax policy initiatives to enhance domestic revenue mobilization. These initiatives encompass Electronic VAT, Electronic Tax Clearance Certificates, upfront payments for imported goods, excise tax stamps, and the reinstatement of vehicle income tax payments, among others.

Further strategies to bolster and refine revenue mobilization efforts include the ongoing e-VAT invigilation exercise, as well as test purchase and mystery shopping operations conducted by the authority.

Target for the year:

For the year 2023, the GRA has established a revenue goal of GH¢106 billion, with the Customs Division anticipated to contribute approximately GH¢28.5 billion.

Furthermore, the GRA has identified around 93 businesses located within the capital as focal points for enforcement and compliance efforts throughout this year.