The Head of the Excise Unit at the Ghana Revenue Authority (GRA), Kwabena Apau Awua Anto, has emphasized the forthcoming rigorous enforcement of the Excise Duty law, which mandates manufacturers of excisable goods to issue a bond or security.
In a webinar organized by the UK-Ghana Chamber of Commerce and PwC Ghana on Compliance for Businesses under the Excise Duty Act 2024, Mr. Anto highlighted the critical importance of compliance with the law.
“All manufacturers producing excisable goods are required to register under the Excise Duty law. This is the first point of compliance. The warehouse where you are keeping those excisable goods must also be registered and you should also provide a bond or security. The first two are rigorously being followed. It is the third part, which is the issuance of a bond or security that has been relaxed but discussions are ongoing to begin rigorously enforcing that too”, he mentioned
He explained that all manufacturers must register under the Excise Duty law as a fundamental requirement.
Additionally, they are required to ensure their warehouses storing excisable goods are registered, and provide a bond or security.
While the GRA has been diligent in enforcing the first two requirements, Mr. Anto noted that the enforcement regarding the issuance of bonds or security has been relaxed. However, discussions are underway to enforce this aspect rigorously. According to him, bonds play a crucial role in ensuring transparency in the production of excisable goods, determining the excise duty to be paid, and setting deadlines for payment.
Mr. Anto further emphasized that failure by manufacturers to enter into a bond or provide security will result in penalties, including paying double the amount of duty owed. He underscored the importance of manufacturers updating their bonds to reflect any changes in production levels, ensuring accurate revenue collection.
Excise duties, unlike general consumption taxes such as VAT, are specifically imposed on selected products like alcoholic beverages, tobacco, and sweetened beverages to discourage excessive consumption and address health concerns like non-communicable diseases. Mr. Anto highlighted recent amendments introducing hybrid duty rates for tobacco products and concessions for locally manufactured beers and malt drinks using local raw materials.
The compliance framework also addresses penalties for non-compliance, such as fines for failure to register or submit returns, and interest on late payments. Mr. Anto acknowledged challenges within the current excise tax regime, including inadequate tax education and inconsistent enforcement, proposing intensified education efforts and enhanced compliance enforcement as solutions.
Looking ahead, Mr. Daniel Nuer from the Ministry of Finance outlined the government’s intention to introduce more excise tax regimes to support economic expansion and growth, urging industry stakeholders to engage with tax authorities to shape future tax policies effectively.
The webinar concluded with discussions on various related topics, including tax stamp authentication, VAT and Excise Duty exemptions, and strategies to combat tax evasion and smuggling, underscoring the collective responsibility in ensuring compliance and safeguarding economic interests.