Industrial Standardisation

In line with international best practices for standardisation, the Ghana Standards Authority Act, 2022 (Act 1078) (GSA Act) was passed in 2022 to amend and consolidate the laws on standardisation, conformity assessment and metrology.  Objectives of the law include the promotion of industrial efficacy and ensuring the production of high-quality goods/services for both local and international consumption. Of significant note under the new GSA Act and for the first time under Ghana’s standardisation law, the Minister of Trade and Industry can declare a Ghana Standard as mandatory in respect of any commodity that may affect public safety, health or the environment on the recommendation of the Ghana Standards Authority. By this provision, the lawmaker allows the exercise of discretionary power in the enforcement of standards for the ultimate purpose of public welfare.

 

Tax Exemptions

Business owners in Ghana have decried the quantum of applicable taxes. Tax exemptions help relieve the tax burden on taxpayers thereby providing a more conducive environment for profitability and for businesses to thrive. Parliament has passed the Tax Exemptions Act, 2022 (Act 1083) to provide an exemption regime and the scope of exemptions. The rationale for granting the tax exemptions includes attracting foreign investments, alleviating the tax burden on the vulnerable in society, encouraging business start-ups and attracting investment into specified sectors and locations. 

Under the law, exemptions are granted only to persons entitled to them under the law and an exemption is not transferable. Agreements cannot waive or vary indirect tax unless specified by the law. The written approval of the Minister for Finance is required to enter any agreement to grant an exemption. The Minister must seek executive and parliamentary approval for the exemption. 

Exemptions from customs duties and taxes include foodstuffs of West African origin such as raw foodstuff and fresh fish caught by Ghanaian owned vessels; and equipment, spare parts and kits for production trials imported by manufacturers or assemblers of plants and machinery including automobiles, registered and recommended by the Minister for Trade and Industry and approved by the Minister for Finance. Among others, diplomats are granted an exemption where a similar exemption is granted to a Ghanaian diplomat in the country of that diplomat. Certain items imported for religious purposes such as alter bread and Zamzam (holy water imported from Mecca) are exempt from customs duties and taxes. Items imported by charitable organisations, non-profit organisations and philanthropists for educational and health purposes are exempt from customs duties and taxes when the approval of the Minister of Finance is obtained.


Shipping

 Overweight packed containers pose safety risks to workers in the maritime industry. Therefore, the Ghana Shipping (Carriage Of Containers) Regulations, 2022  (LI 2439) was passed to incorporate into domestic law, the International Convention for the Safety of Life at Sea 1974, Chapter VI (amended) which requires that any container carrying cargo should have its weight verified before being stowed on-board ships. Under LI 2439, containers carrying cargo must always be weighed before being loaded onto a ship for a voyage, and a provision in a contract cannot not override or conflict with this obligation. The law also regulates the operation of weighing facilities which verify the gross mass of containers. It imposes a duty on persons operating weighing facilities to apply to the Director General of the Ghana Maritime Authority (GMA) for registration. The GMA may revoke the registration of a registered weighing facility if it submits an inaccurate verified gross mass of a packed container.

This law is expected to rectify inaccurate declaration of gross mass of packed containers to ensure port safety.

 

2023 Budget Statement Proposals

 The budget statement presented by the Minister of Finance makes proposals for changes in law in 2023 which include the following:

  • a revision to the tax on cigarettes and tobacco products to align with ECOWAS protocols;
  • an increase in the excise rate for spirits above the rate for beers;
  • an introduction of taxes on electronic smoking devices and liquids;
  • a review of tax exemptions for free zone, mining and  oil and gas companies; and
  • an introduction of self-clearing of goods by importers at the ports of entry without recourse to a customs house agent.