Standard rate tax payers are now required to file two separate tax returns to the Ghana Revenue Authority (GRA) under the amended Value Added Tax, National Health Insurance Levy (NHIL) and Ghana Educational Trust Fund (GETFund) acts.
The standard rate tax payers which include manufacturers and service providers, used to file only one tax return under the Value Added Tax 890, before its recent amendment.
To ensure strict adherence to the law, the GRA on Wednesday organized a sensitization programme for tax payers in its Zone Four area comprising tax payers from Spintex, Teshie, Nungua, Tema, Ashaiman and their environs.
Mr Alfred Tsumasi Ntiamoah, Office Manager of the Spintex Road Medium Tax Payer Office, addressing participants, said the amended acts were the VAT Amendment Act 970 (Act 2018) and NHIL Act 971 and GETFund Act 972 which enjoined standard rate tax payers to issue separate returns since such revenues would be lodged into different accounts.
Mr Ntiamoah explained that while one of the returns would cater for VAT, the other one would contain that of the GETFund and NHIS levies.
He stated that the perception that GRA had increased the tax rate was false, explaining that the amendments required that the levies were added to the price of the item before the 12.5 per cent VAT was charged.
“The levy has to be added to the price of the item before the VAT is charged which is 12.5 per cent. Automatically, there will be some slight increment because if you are adding back the five per cent of the NHIS and GETFund levies and the cost of the item before charging the VAT of 12.5, the dynamics will change”.
He urged tax payers to be abreast with the computation as it entailed a lot, which included how to extract the VAT, GETFund and the NHIL, adding that they must know their responsibilities under the act to avoid penalties.
He further advised the public to honour their tax obligations to enable government accrue the needed revenue for national development.
Mr Foster Agbogbo, a participant from the Trade Net Investments, said tax payers were paying more than the 17.5 per cent tax the GRA announced adding that, they pay about 20 per cent instead.
He called on the GRA to do proper assessment to ensure that exactly 17.5 per cent was paid instead of a higher amount adding that they must stop over burdening the few honest tax payers.
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