Ghana digital tax stamp scheme
The Ghana Revenue Authority (GRA) is part of the Ministry of Finance and is responsible for the collection, protection and accounting for tax revenue on goods and services.
Considerable revenue has been lost through illicit trade. Illegal operators within Ghana smuggle tobacco, spirits and other alcoholic beverages into the country as well as selling counterfeited products.
The under declaration of quantities of these products, both imported and locally produced, has led to significant loss of revenue. Goods in transit, particularly cigarettes, are often diverted or smuggled back into the country and sold on the market which are difficult to detect. This activity causes significant revenue loss for the Government and also puts legitimate brand owners and businesses at a competitive disadvantage.
Counterfeit products are extremely dangerous to consumers as these goods are typically of much lower quality and may contain poisonous constituents which adversely affect health.
This has necessitated various measures for improving inspection, verification and monitoring of products entering and moving through the market, increasing revenue and protecting consumers.
The use of digital tax stamps on selected excisable products (i.e. cigarettes and alcoholic beverages) has been identified as an effective means of addressing these challenges.
Legislative background
In accordance with the Provisions of the Excise Tax Stamp Act, 2013 (Act 873), Excisable products which are imported or locally produced are required to be affixed with Tax Stamps with specific features designed and supplied by the Ghana Revenue Authority before they are delivered ex-factory, cleared from any port of entry or presented for sale at any commercial level in Ghana.
The affected products are
- All cigarettes and other tobacco products
- Alcoholic beverages whether bottled, canned, contained in kegs for sale or packaged in any form
- Non- alcoholic carbonated beverages whether bottled, canned or packaged in any form
- Bottled water
- Any other excisable product prescribed by the Minister of Finance
As part of measures to ensure the smooth and effective implementation of the Tax Stamp programme, all importers and manufacturers of the affected products are required to register with the Ghana Revenue Authority (GRA)
The registration is mandatory under section 4 of the Act and it shall among others, enable GRA grant user access to the Tax Stamp Portal to the registered taxpayers for the administration of the programme
An applicant qualifies to be registered if the applicant is a manufacturer or trader with a valid Taxpayer Identification Number (TIN).
A foreign manufacturer who supplies goods to an importer shall also be required to be registered as set out in Registration form ‘A’ if the importer wishes the manufacturer to affix the Excise Tax Stamps on the goods before importation
Accordingly all affected taxpayers are required to visit the Digital Tax Stamp Web portal at www.graexcisetaxstamp.com and complete the registration form.
For offline registration taxpayers may collect, complete and submit the prescribed registration Form A to their local GRA office for onward transmission to the office of the Commissioner General.