How the Growth and Sustainability Levy affects mining, upstream Oil and Gas sectors
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The recently passed Growth and Sustainability Levy Bill is seeking to raise revenue for the growth and fiscal sustainability of the economy.
The memorandum that accompanied the Bill, indicated that the Coronavirus Disease (COVID-19) pandemic led to a significant reduction in revenues and increased expenditure enormously.
This has been compounded by the Russian-Ukraine war resulting in unprecedented global crises, depreciation in currencies and impacted living conditions and inflation levels.
Parliament on Friday, March 31st passed three revenue Bills including Growth and Sustainability Levy Bill as part of measures to raised GHS4billion cedis to support the economy.
The application of this levy is limited to profits before tax or production for the 2023, 2024, and 2025 years of assessment.
This Levy imposes on profit before tax of the companies and institutions and on production in the case of mining, upstream Oil and Gas Companies specified under three different categories as follows:-
Category A – Rate of Levy: 5% on Profit before tax
Banks
Non-Bank Financial Institutions
Insurance Companies
Telecommunications Companies liable to collect and pay the Communications Service Tax under the Communications Service Tax Act, 2008 (Act 754).
Breweries
Inspection and Valuation Companies
Companies providing mining Support Services
Bulk Oil Distributors
Oil Marketing Companies
Communication Tower Operators
Companies providing upstream Petroleum Services
Companies and Institutions registered by the Securities and Exchange Commission
Specialised Deposit – Taking Institutions
Electronic Money Issuers
Shipping lines, maritime and airport terminals
Category B – Rate of Levy: 1% of gross production
Mining Companies and Upstream Oil and Gas Companies
Category C – Rate of Levy: 2.5% of Profit before tax
All other entities not falling within Category A or Category B
ABOUT: Nana Kwesi Coomson
[email protected] An Entrepreneur, Corporate Social Responsibility, Corporate Communications Executive and Philanthropist. Editor-in-Chief of www.233times.com. A Senior Journalist with Ghanaian Chronicle Newspaper. An alumnus of Adisadel College where he read General Arts. His first degree is in Bachelor of Arts - Political Science (major) and History (minor) from the University of Ghana. He holds MSc in Corporate Social Responsibility (CSR) and Energy with Public Relations (PR) from the Robert Gordon University in the United Kingdom. He is a 2018 Mandela Washington Fellow who studied at Clark Atlanta University in USA on the Business and Entrepreneurship track.
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