The Parliament of Ghana has passed new laws to help raise revenue to support the Government’s expenditure. The laws are the Covid-19 Health Recovery Levy Act, 2021 (Act 1068), Energy Sector Levies (Amendment) Act, 2021 (Act 899) and the Financial Sector Recovery Levy Act, 2021 (Act 1067).

The main purpose of these Acts is to increase Government’s revenue mobilization to support the Covid-19 expenditure, proper sanitation management, cost of excess power generation and outstanding cost of the financial sector clean-up. The Acts were assented to by the President of the Republic of Ghana on 31 March 2021. The Covid-19 Recovery Levy and the Energy Sector Levy will be in force from 1 May 2021.

In this Alert, we highlight the key aspects of the Acts below:

1.0 Covid-19 Health Recovery Levy Act, 2021, Act 1068
• There will be 1% levy chargeable on the supply of goods and services made in Ghana
other than exempt supply.
• The Act also imposes 1% levy on importation of goods and services other than exempt
imports.
1.1 Scope of the Covid-19 Health Recovery Levy
The levy is applicable on:
• The supply of goods that are subject to the Flat Rate Scheme of VAT.
• Suppliers that are subject to the Standard Rate Scheme of VAT.
1.2 Application of the Levy
The levy shall be applied:
• In the same way as the existing Ghana Education Trust Fund (GETFund) Levy and the
National Health Insurance Levy (NHIL) and
• Not allowable for input tax deduction.
2.0 Energy Sector Levies (Amendment) Act, 2021, Act 1064
• The Act imposes an Energy Sector Recovery Levy on some specified petroleum
products. That is, 20 Ghana pesewas per litre on Petrol and Diesel and 18 Ghana
pesewas per kg of Liquified Petroleum Gas.
• The Act also imposes a Sanitation and Pollution Levy of 10 Ghana pesewas per litre on
Petrol and Diesel.