2017 NATIONAL BUDGET STATEMENT ON EXEMPTIONS IMPLEMENTATION BY GRA - PowerPoint PPT Presentation

2017 NATIONAL BUDGET STATEMENT ON EXEMPTIONS IMPLEMENTATION BY GRA

2017 NATIONAL BUDGET STATEMENT ON EXEMPTIONS • REVIEW OF IMPORT DUTY AND TAX EXEMPTIONS • 798. Mr. Speaker, while Government’s focus is on reducing taxes to enhance production, we are also determined to tackle the systemic abuse in the exemptions regime. • There shall be a comprehensive review of the regime on import duty exemptions and tax reliefs with a view to eliminating abuses and improving efficiency in the applications of these incentives. • To this end, the review will cover, among others, the following exemptions and tax reliefs as a matter of urgency:

2017 NATIONAL BUDGET STATEMENT ON EXEMPTIONS • Import duties and all forms of taxes and levies payable by both domestic and foreign companies and investors doing business in the country; and • Import duties and all forms of taxes and levies payable by non-governmental and charity organisations.

2017 NATIONAL BUDGET STATEMENT ON EXEMPTIONS • Import duties, taxes and levies payable by MDAs and other government departments; • Import duties and all forms of taxes and levies payable by both domestic and foreign companies, suppliers and contractors executing projects and contracts in the country; • Import duties and all forms of taxes and levies payable by employees, directors and senior officials of both domestic and foreign companies, suppliers and contractors executing projects in the country;

2017 NATIONAL BUDGET STATEMENT ON EXEMPTIONS • UPFROINT PAYMENT OF EXEMPTIONS AND APPLICATION FOR REFUNDS • 799. Mr. Speaker, as a transition arrangement, henceforth, applicants for these import duty exemptions and tax reliefs shall be required to , except in exceptional circumstances to be determined by the Minister for Finance, pay fully all applicable import duties and taxes, and apply with justification for refund .

SUMMARY BUDGET STATEMENT ON EXEMPTIONS 1. EXEMPTIONS, as they are currently implemented, have Been Abolished. 2. Importers are to Pay the Exemption amounts Upfront; and 3. Importers to Claim Refunds Later (on application) 4. Exemptions May be Granted in Exeptional Cases

REVISED PROCESS 1. Identify all current EXEMPT Customs Procedures. 2. Exempt CPC’s Will henceforth calculate applicable taxes using appropriate Tax Bases and Duty Rates 3. Importers will NOW Use Exempt CPC’s ONLY WHEN a. Exemptions are to be PAID Upfront b. Goods have been EXEMPTED BUT there is no Refund 4. Importers WILL NOT use Exempt CPC for Duties NOT Exempt 5. In situations (4) Importers will use CPC 40D01 , 47D01 or as appropriate

REVISED PROCESS 1. CONCESSIONS They are NOT EXEMPTIONS so Importers are to use appropriate CPC and pay the Duties and Taxes at the prescribed Concessional Duty Rates 2. MINING LIST In the Revised Only Items on the MINING LIST to be cleared under Concessionary Duty Rates a. Items NOT on the MINING List Attract Duty as in the Tariff b. No EXEMPTIONS will be granted for ITEMS NOT in the MINING LIST c. Importers who Bring Exemption Letters for ITEMS NOT On the Mining List will have the letters rejected. 3.

R EVISED PROCESS 1. ETLS These are NOT EXEMPTIONS BUT Concessions and are to be Cleared like using the Concessionary Duty Rates. 2. DIPLOMATIC GOODS Will not Pay Duty Upfront. Will continue as currently 3. Exemptions for PRIVILEGED PERSONS to apply Through MOFEP 4. USE OF GCNET eMDA PORTAL FOR EXEMPTIONS a. Importers will continue to use the Portal to Apply for the Exemptions b. They will thereafter follow the Procedure as previously outlined. .

R EVISION OF CUSTOMS PROCEDURE CODES 1. REVISION OF CPC’s 2. Review of CPC’s is ongoing to De -Activate those that have become Inapplicable/Ineffective Some Examples of CPC’s to be Revised 1. 40M01 EXEMPTIONS FOR ITEMS NOT CONTAINED IN MINING LIST. 2. 40M02 DUTIABLE MATERIALS AND SPARE PARTS ON MINING LIST 3. 40M03 NEW PLANT ETC ON MINING LIST 4. 40M04 DUTIABLE PARTS ETC NOT ON MINING LIST 5. 40M05 NEW PLANT ETC NOT ON MINING LIST 40M06 EXCEPTIONAL ITEMS UNDER EXEMPTIONS – CEPS 6. APPROVAL 7. 40M00 EXEMPTIONS AS PER MINING LIST 8. 40D13 MISCELLANEOUS EXEMPTIONS

SOME SPECIAL CPC’s These are companies that usually enjoy Exemptions 1. VALCO, 2. VRA, 3. ECG, 4. PORTS AND HARBOURS AUTHORITY, 5. MILLENIUM DEVELOPMENT AUTHORITY, 6. ELECTORAL COMMISSION, 7. TECHNICAL ASSISTANCE, 8. BRITISH COUNCIL, 9. GHANA WATER COMPANY 10. GHANA CIVIL AVIATION AUTHORITY 11. GNPC 12. GIPC 13. Etc These special category institutions will continue to use their CPC’s when they have Exemptions BUT use 40D01, 47D01 etc when Items are not exempt

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