Act 878
Excise Duty Act, 2014
ARRANGEMENT OF SECTIONS
Section
Imposition of excise duty
1.Payment
of excise duty
2.Exemptions
3.Temporary
importation of goods
4.Goods
not accounted for
5.Quantity
and value of excisable goods
Collection and recovery
6.Time
for payment of excise duty
7.Payment
of excise duty by manufacturers
8.Payment
of excise duty by importers
9.Excise
duty returns
10.Assessment
of excise duty and correction of return
11.Credit
and refund for excise duty paid on raw materials
12.Refund
of excise duty paid on imported excisable goods
13.Application
for refund of excise duty
Manufacturers and approved warehouses
14.Registration
of manufacturers
15.Application
for registration
16.Compulsory
registration
17.Effective
date of registration
18.Change
in relevant events or goods
19.Disqualification
for certificate of registration
20.Death
of a holder of a certificate of registration
21.Cancellation
of registration
22.Notice
to Commissioner-General
23.Prohibition
on warehousing of excisable goods
24.Approval
of premises as warehouse
Offences and penalties
25.Common
provisions relating to offences and penalties
26.Failure
to register
27.Manufacture
outside a warehouse
28.Failure
to enter into bond or lodge security
29.Failure
to give notice
30.Failure
to provide office accommodation
31.Failure
to submit a return
32.Failure
to pay tax on due date
Administrative and miscellaneous provisions
33.Application
of other laws
34.Security
35.Liquor
36.Regulations
37.Interpretation
38.Transitional
provisions
SCHEDULES
Act 878
THE EIGHT HUNDRED AND SEVENTY-EIGHTH
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
EXCISE DUTY ACT, 2014
AN ACT to provide for the imposition and collection
of excise duty on selected imported and locally
manufactured goods and for related matters.
DATE Of ASSENT: 7th November, 2014.
PASSED by Parliament and assented to by the
President:
Imposition of excise duty
Payment of excise duty
1. Excise duty is payable on the goods specified in
the First Schedule where the goods are
(a)
manufactured in the country; or
(b)
imported into the country
at the rates specified in the First Schedule.
Exemptions
2. Excise duty is not payable on
(a)
goods specified in the Second Schedule;
(b)
goods that have not been
entered for home use from the warehouse of a
manufacturer where the Commissioner- General is
satisfied that the goods
(i) have been destroyed by natural causes; or
(ii) have deteriorated or have been damaged while
stored in the warehouse of a manufacturer, and have
been securely disposed of in a manner satisfactory
to the
Commissioner-General;
(c)
goods that are exported if the goods are
(i) entered for re-export or re-exported in the case
of imported goods;
(ii) removed from a warehouse and immediately
entered for export in the case of goods manufactured
in the country; or
(iii) delivered as ship stores on a ship or an
aircraft proceeding to a place outside Ghana; and
(d)
goods that are removed from a warehouse of a
registered manufacturer to another warehouse of the
same manufacturer or to the warehouse of another
registered manufacturer.
Temporary importation of goods
3.
(1) The Commissioner-General may grant permission
for a person to import excisable goods' without
payment of excise duty where the
Commissioner-General is satisfied that the goods
(a)
to be imported are for purposes of further
processing or exhibition, and
(b)
shall be re-exported within three months from the
grant of the permission.
(2) A person granted permission under subsection (1)
shall provide a bond or security to cover an amount
equal to the excise duty payable on the goods as
determined by the Commissioner-General.
(3) The Commissioner-General shall retain the bond
or security where goods imported are not re-exported
within the specified period.
(4) Where the goods are re-exported within the time
specified in subsection (1), the
Commissioner-General shall cancel the bond or
security provided.
Goods not accounted for
4.
(1) A manufacturer shall notify the
Commissioner-General of a discrepancy in goods
between the actual and recorded inventory of the
manufacturer within seven days of becoming aware of
the discrepancy.
(2) Where a manufacturer cannot account for a
quantity of goods manufactured in a warehouse to the
satisfaction of the Commissioner- General, the
manufacturer is liable to pay excise duty as if the
manufacturer entered those goods for home use from a
warehouse during the month in which the deficiency
occurred.
Quantity and value of excisable goods
5.
(1) Where a rate of excise duty specified in the
First Schedule is payable by reference to a unit of
measurement other than value and
(a)
goods are imported or removed from a warehouse in a
container intended for sale of goods in a retail
sale; and
(b)
the container is marked, labelled or commonly sold
as containing a specific number of units of measure
of the goods, the container shall be taken to
contain that specific number of units of measure.
(2) Where a rate of excise duty specified in the
First Schedule is payable by reference to the value
of excisable goods, the value of the goods is
(a)
where the goods are imported,
(i) the sum of the value of the goods determined
under the Customs, Excise and Preventive Service
(Management) Act, 1993 (P.N.D.C.L. 330) for the
purpose of assessing import duty on the goods at ad
valorem rates, whether or not import duty is
payable on the goods; and
(ii) the amount of taxes, duties, fees or other
charges payable on the goods at the time of entry
into the country other than excise duty or value
added tax not included in subparagraph (i); or
(b)
the consideration paid or payable in relation to the
sale where the goods are manuractured in the country
and are sold at the time they are entered for home
use; or
(c)
at the time the goods are
entered for home use, considered to be the open
market value of the goods
(i) where the goods are manufactured in the country
and are not sold at the time they are entered for
home use; or
(ii) where the goods are sold but the seller,
purchaser or any other person concerned in the sale
are related persons.
(3) Despite subsection (2)(b) or(c), the
value of the goods shall be at least the ex-factory
price.
(4) The value determined in accordance with
subsection (2) or (3) does not include the amount of
excise duty and" value added tax payable in relation
to those goods.
Collection and recovery
Time for payment of excise duty
6.
Excise duty becomes due and is payable to the
Commissioner- General "
(a)
where goods are manufactured in the country at the
time when the goods are entered for home use by the
manufacturer from whose warehouse the goods are
removed;
(b)
where goods are imported into the country by the
person who enters the goods for home use, or is
required to enter the goods for home use; and
(c)
where goods are manufactured in the country without
the relevant registration, by the person who
manufactured the goods and at the time the goods
were manufactured.
Payment of excise duty by manufacturers
7. (1) Where excise duty is payable by a
manufacturer
(a)
in relation to excisable goods entered for home use
from a warehouse by the manufacturer during a
calendar month, the excise duty shall be paid to the
Commissioner-General on or before the twenty-first
day of the following calendar
month; and
(b)
in relation to excisable goods manufactured in an
unapproved warehouse, the excise duty shall be paid
to the Commissioner-General when the goods are
manufactured.
(2) The liability to pay excise duty under this Act
does not depend on
(a)
the Commissioner-General making an assessment of the
excise duty due, or
(b)
the manufacturer making a return in accordance with
section 9.
(3) A manufacturer shall not enter for home use
excisable goods manufactured in the country from an
approved warehouse unless the manufacturer has
entered into a bond or lodged security with the
Commissioner -General,
(4) Despite subsection (3), a manufacturer shall not
enter for home use excisable goods from an approved
warehouse if the amount of excise duty payable by
the manufacturer on the entry exceeds the amount of
security given under subsection (3), unless
(a)
the Commissioner-General, on application in writing
by the manufacturer, gives
(i) permission for the entry; and
(ii) approval for the manufacturer to increase the
amount of security given prior to the entry; or
(b)
in any other case, the manufacturer pays the excise
duty payable on the goods before the excisable goods
are entered for home use.
Payment of excise duty by importers
8.
(1) The excise duty payable in relation to excisable
goods imported into the country shall be paid to the
Commissioner-General at the time the goods are
entered for home use.
(2) For the purposes of subsection (1),
(a)
a passenger who imports baggage for which an entry
is not required under the Customs, Excise and
Preventive Service (Management) Act, 1993
(P.N.D.C.L. 330) is considered to have entered the
baggage for home use at the time the baggage is
delivered to the passenger in the country; and
(b)
the addressee of goods imported by post for which an
entry is not required under the Customs, Excise and
Preventive Service (Management) Act, 1993
(P.N.D.C.L. 330) is considered to have entered the
goods for home use at the time the goods are
delivered to the addressee.
(3) Where a person who imports excisable goods fails
to enter the goods for home use under the Customs,
Excise and Preventive Service (Management) Act, 1993
(P.N.D.C.L. 330) , excise duty is payable at the
time when import duties become payable in relation
to those goods, whether or not those goods are
subject to import duties.
Excise duty returns
9. (1) A manufacturer shall file an excise duty
return for each calendar month not later than the
twenty-first day of the following calendar month
whether or not an excise duty is payable for the
month to which the return relates.
(2) An excise duty return shall
(a)
be in a form approved by the Commissioner-General;
(b)
be filed with the Commissioner-General;
(c)
provide information in relation to excisable goods
removed by the manufacturer during the month to
which the return relates; and
(d)
contain any other information that may be required
by the Commissioner-General.
Assessment of excise duty and
correction of return
10. (1) Where the cornmissioner-Genral has reason to
believe that
(a)
a person shall become liable for the payment of an
amount of excise duty but that person is unlikely to
pay the amount;
(b)
a person, other than a manufacturer, enters for home
use goods that are excisable and represents that
excise duty is charged on the goods entered;
(c)
a manufacturer wrongly enters for exports or home
use excisable goods or applies the excise duty
rates;
(d)
a manufacturer fails to submit a tax return
specified in this Act or Regulations;
(e)
a return is incorrect or that a lawful excise duty
has not been paid; or
(f)
section 16 applies to a person,
the Commissioner-General, based on any information
available, may make an assessment of the amount of
excise duty payable by the person or of the amount
of excise duty claimed by the person as payable in
respect of the supply.
(3) Where a person who imports excisable goods
fails to enter the goods for home use under the
Customs, Excise and Preventive Service (Management)
Act, 1993 (P.N.D.C.L. 330) , excise duty is payable
at the time when import duties become payable in
relation to those goods, whether or not those goods
are subject to import duties.
Excise duty returns
9.
(1) A manufacturer shall file an excise duty return
for each calendar month not later than the
twenty-first day of the following calendar month
whether or not an excise duty is payable for the
month to which the return relates.
(2) An excise duty return shall
(a)
be in a form approved by the Commissioner-General;
(b)
be filed with the Commissioner-General;
(c)
provide information in relation to excisable goods
removed by the manufacturer during the month to
which the return relates; and
(d)
contain any other information that may be required
by the Commissioner-General.
Assessment of excise duty and correction of return
10.
(1) Where the commissioner-General has reason to
believe that
(a)
a person shall become liable for the payment of an
amount of excise duty but that person is unlikely to
pay the amount;
(b)
a person, other than a manufacturer, enters for home
use goods that are excisable and represents that
excise duty is charged on the goods entered;
(c)
a manufacturer wrongly enters for exports or home
use excisable goods or applies the excise duty
rates;
(d)
a manufacturer fails to submit a tax return
specified in this Act or Regulations;
(e)
a return is incorrect or that a lawful excise duty
has not been paid; or
(f)
section 16 applies to a person,
the Commissioner-General, based on any information
available, may make an assessment of the amount of
excise duty payable by the person or of the amount
of excise duty claimed by the person as payable in
respect of the supply.
(2) The person assessed
(a)
under subsection (l)(a) is the person
required to account for the excise duty under this
Act;
(b)
under subsection (1) (b) or (c), is
the person making the entry;
(c)
under subsection (1) (d) or (e), is
the person required to submit the return or required
to pay the excise duty; or
(d)
under subsection 1(f) is the person to whom
section 16 applies.
(3) The Commissioner-General may make the assessment
for any period when the Commissioner-General deems
it necessary
(4) In the absence ofa supply or return, the
Commissioner-General may, based on the information
available, estimate the excise duty payable by a
person for the purposes of making the assessment.
(5) A person who is not satisfied with a return
submitted by that person may apply to the
Commissioner-General in writing for authority to
make an amendment to the original return.
(6) For purposes of subsection (5), the applicant
shall
(a)
state in detail the grounds on which the application
is made, and
(b) submit the application not more than three
months after the submission of the original return.
(7) The commission-General may, after considering an
application under subsection (5),
(a)
approve or refuse the application; and
(b)
make an assessment of the amount of excise duty
payable under this Act.
(8) Where an assessment has been made under this
section, the Commissioner-General shall serve a
notice of the assessment on the person assessed, and
the notice shall state
(a)
the excise duty payable;
(b)
the date that the excise duty is due and payable;
(c)
the place for payment of the excise duty; and
(d)
the procedure for objecting to the assessment.
(9) An amount assessed under subection (l)(b), (c)
or (e) is for the purposes of this Act, an excise
duty charged under this Act.
Credit and refund for excise duty paid on raw
materials
11.
(1) A manufacturer who uses excisable goods on which
excise duty has been duly paid as raw materials in
the manufacture of other excisable goods in the
country, is subject to the production of evidence of
payment of excise duty, entitled to a credit for
(a)
the excise duty paid by the manufacturer in respect
of an entry of the raw materials for home use, or
(b)
an excise duty that the Commissioner-General is
satisfied was paid, by the person from whom the
registered manufacturer acquired the raw materials
or by any other person, in respect of an entry for
home use of those raw materials.
(2) The entitlement to a credit
(a)
arises when the manufacturer enters for home use or
acquires the excisable goods for use as raw
materials in the manufacture of other excisable
goods, and
(b)
shall be applied against the amount of excise duty
payable, in accordance with section 7 (1) for the
calendar month in which the entitlement to the
credit arises.
(3) Where a determination of a credit under
subsection (2) results in an excess credit for the
calendar month, the manufacturer shall carry that
amount forward as a credit to the next calendar
month, and shall continue to carry the amount
forward as credit until no credit remains.
(4) Despite subsection (3), where an excess credit
is attributable
to excisable goods manufactured for export, the
manufacturer is entitled to a refund of that amount
if
(a)
more than twenty-five percent of the excisable goods
entered by the manufacturer in that calendar month
were entered for export in accordance with section
2; and
(b)
the export proceeds have been repatriated by the
bank of the buyer to the authoriscd dealer bank of
the exporter in the country.
efund of excise duty paid on imported excisable
goods
12.
(1) A person is entitled to a refund of excise duty
paid on imported excisable goods entered for home
use if the goods are in compliance with the
conditions for drawback of import duties under the
Customs, Excise and Preventive Service (Management)
Act, 1993 (P.N.D.C.L. 330)
(2) A person is entitled to a refund of the excise
duty paid on manufactured excisable goods entered
for home use and subsequently exported if the
Commissioner-General is satisfied that the goods
were exported from the country in the state in which
they were entered for home use.
(3) An application for a refund under this section
shall be made within twelve months from the date on
which the goods are exported or put on board the
ship or aircraft in which they are exported.
Application for refund of excise duty
13.
(1) An application for a refund of excise duty shall
be made to the Commissioner-General in the
prescribed form within twelve months after the month
to which the refund relates and shall contain any
other information that the Commissioner-General may
require.
(2) Where a refund is payable to a person, the
Commissioner- General may apply part or all of the
refund
(a)
firstly, in reduction of an excise duty, interest or
penalty
payable by the person under this Act; and
(b)
subsequently, against any other taxes or duties that
may be collected by the Commissioner-General.
(3) Where a person who is entitled to a refund makes
an application for the refund within the required
time, the Commissioner-General shall, subject to
subsection (2), pay the refund or the amount
remaining within sixty days from the date on which
the application is filed.
(4) Where a refund is paid to a person in error, the
person shall repay the amount, within thirty days
after the person is notified by the
Commissioner-General of the error.
(5) The amount recoverable from a person under
subsection (4) shall be considered as excise duty
payable under this Act.
(6) Where a person is not entitled to a refund but
makes a claim and receives the refund, that person
shall repay the amount within fourteen days and is
liable to an administrative penalty of twice the
amount of the refund.
Manufacturers and approved warehouses
Registration of manufacturers
14.
A person shall not carryon a business of
manufacturing excisable goods in the country unless
(a)
that person is registered under this Act;
(b)
the excisable goods are manufactured in a warehouse;
and
(c)
that person has entered into a general bond or
lodged a form of security with the
Commissioner-General.
Application for registration
15.
(1) A person who intends to carryon a business of
manufacturing excisable goods in the country shall,
not later than thirty days before commencement of
the business, apply to the Commissioner-General to
be registered under this Act.
(2) On receipt of an application, the
Commissioner-General shall notify the applicant in
writing of the decision of the Commissioner- General
within thirty days.
(3) The Commissioner-General
(a)
shall register the applicant if the
Commissioner-General is satisfied that the applicant
will be carrying on the business of manufacturing
excisable goods in the country;
(b)
shall issue the applicant with a certificate of
registration; and
(c)
may impose the terms, conditions or restrictions
that the Commissioner-General considers appropriate.
(4) Where the Commissioner-General refuses to
register an applicant the Commissioner-General shall
give reasons for the refusal.
(5) An applicant who is dissatisfied with a decision
of the Commissioner-General under subsection (4) may
submit a petition in writing to the
Commissioner-General for a review of the decision
within thirty-days from the date of receipt of the
decision and shall state the grounds for review of
the decision
(6) Despite subsection (5), an applicant may in
writing request for extension of time to submit a
petition and state the reasons for the re- quest.
(7) Where the commissioner-General is satisfied that
there are reasonable grounds for the grant of
extension of time to submit a petition the
Commissioner-General shall within thirty days of the
receipt of the application notify the applicant in
writing of the approval.
(8) An applicant who is dissatisfied with the
outcome of a petition may within thirty days from
the date of receipt of the decision apply to the
Minister for a further reveiw.
(9) The Minister shall on reciept of the petition
(a)
take a decision on the matter within thirty days;
and
(b)
notify the applicant in writing of the decision
within fourteen days from arriving at the decision.
Compulsory registration
16.
Where the Commissioner-General believes that a
person is required to be registered under this Act
but has failed to apply for registration, the
Commissioner-General may register the person and
issue the person with a certificate of registration
after the Commissioner-General
(a)
notifies the person in writing; and
(b)
gives the person an opportunity to object to the
registration within thirty days.
Effective date of registration
17.
Registration under this Act takes effect from the
date specified on the certificate of registration
issued by the Commissioner-General.
Change in relevant events or goods
18.
A registered manufacturer shall, notify the
Commissioner- General in writing of
(a)
the date and details of a change in the name,
address, place of business, constitution, or nature
of the principal activity of the manufacturer not
later than fourteen days after the occurrence of the
change; and
(b)
a change in the nature or quantity of excisable
goods manufactured in the country not later than
fourteen days before making the change.
D isqu alification for certificate of
registration
19.
The Commissioner-General shall not grant or transfer
a certificate of registration to a person
(a)
who has been convicted of an offence under this Act;
(b)
who is less than eighteen years of age; or
(c)
whose certificate of registration has been cancelled
under this Act.
Death of a holder of a certificate of registration
20.
Where a holder of a certificate of registration
dies, the Commissioner-General may, subject to
section 19, transfer the certificate of registration
to
(a)
the personal representative of the holder of the
certificate of registration;
(b)
the person beneficially entitled to the business;
(c)
the Administrator-General or Public Trustee; or
(d)
the appointee of the Administrator-General or Public
Trustee.
Cancellation
of registration
21.
(1) The Commissioner-General may, after giving
notice in writing to a manufacturer, cancel the
registration of the manufacturer where
(a) the manufacturer does not comply with the
terms, conditions or restrictions imposed on the
registration;
(b)
the manufacturer is convicted of an offence under
this Act or the Customs, Excise and Preventive
Service (Management) Act, 1993 (P.N.D.C.L. 330); or
(c)
the person is less than eighteen years.
(2) The cancellation of the registration of a
manufacturer does not affect an obligation or
liability of the manufacturer under this Act in
respect of acts done by the manufacturer or
omissions by the manufacturer including the
obligation to
(a)
pay excise duty; and
(b)
file excise duty returns.
while the manufacturer was registered.
Notice to Commissioner-General
22.
(1) A manufacturer who ceases to manufacture
excisable goods shall, within fourteen days of the
date of the cessation, notify the
Commissioner-General in writing of
(a)
the date on which the manufacturer ceased to
manufacture excisable goods;
(b)
the date on which the manufacturer expects that no
excisable goods will remain in the warehouse of the
manufacturer; and
(c)
whether or not the
manufacturer intends to recommence manufacturing
excisable goods within twelve months from the date
provided under paragraph (b).
(2) Where the Commissioner-General receives a
notification, the Commissioner-General
(a)
shall carry out an audit of the warehouse of the
manufacturer; and
(b)
shall, by notice in writing, cancel the registration
of the manufacturer with effect from the first day
on which excisable goods no longer remains in the
warehouse of the
manufacturer, unless the Commissioner-General has
reasonable grounds to believe that the manufacturer
will recommence manufacturing excisable goods within
twelve
months from that date.
(3) Where excisable goods remain in the warehouse of
a manufacturer immediately after the cancellation of
the registration of the manufacturer, the goods in
the warehouse will be considered to have been
entered for home use on the preceding day.
(4) A manufacturer who sells, as a going concern, a
business of manufacturing excisable goods for which
the person is registered, shall notify the
Commissioner-General, in writing, not later than
fourteen days before the earliest of the dates on
which
(a)
the sale occurs;
(b)
the purchaser acquires any legal interest in the
assets to be acquired; or
(c)
the assets of the going concern are transferred.
(5) Where subsection (4) applies and the seller has
transferred the entire business for which the seller
is registered, the Commissioner- General shall
cancel the registration of the seller.
Prohibition on warehousing of excisable goods
23.
A manufacturer who is registered or required to be
registered under this Act shall
(a)
store excisable goods on which excise duty has not
yet been paid only in an approved warehouse;
(b)
enter excisable goods for
home use only from an approved warehouse; and
(c)
complete, at the time of entry for home use, the
relevant records, forms, or documents required by
the Commissioner- General in relation to the entry.
Approval of premises as warehouse
24.
(1) A manufacturer shall apply to the
Commissioner-General in a form determined by the
Commissioner-General for approval of premises as a
warehouse for the purpose of
(a)
depositing,
(b)
keeping,
(c)
manufacturing, or
(d)
securing
excisable goods.
(2) Where the Commissioner-General is satisfied that
the premises meet the requirements set out in
Regulations, the Commissioner- General shall approve
the application subject to such terms, conditions or
restrictions.
(3) The Commissioner-General may station an officer
in a warehouse to ensure compliance with this Act.
(4) The manufacturer shall provide the officer with
appropriate office accommodation at or within the
warehouse to the satisfaction of the
Commissioner-General.
Offences and penalties
Common provisions relating to offences and penalties
25.
(1) Where a person is liable to more than one
penalty or fine under this Act in relation to the
same entry for home use of excisable goods
manufactured in the country, the total penalty or
fine imposed on that person in relation to the
excisable goods shall not exceed three times the
value of the goods.
(2) A penalty payable under this Act is recoverable
as if it were excise duty payable under this Act.
(3) Where a person is convicted of an offence under
this Act after having been previously convicted of a
similar offence under this Act, the Court may,
instead of or in addition to imposing the prescribed
fine, impose a term of imprisonment of not more than
two years, with or without the right of release on
payment of a fine.
Failure to register
26.
(1) A person who carries on a business of
manufacturing excisable goods in the country without
registering as a manufacturer commits an offence and
is liable on summary conviction to excise duty
payable in relation to the excisable goods or to a
term of imprisonment of not more than one year or to
both.
(2) In addition to the penalty provided under
subsection (1)
(a)
the person shall pay a penalty of not more than two
times the amount of excise duty payable in relation
to the excisable goods; or an amount of not less
than five hundred currency points and not more than
one thousand currency points, whichever is higher;
and
(b)
the Commissioner-General may authorise the
forfeiture of goods, raw materials, apparatus,
utensils and other materials which in the opinion of
the Commissioner-General can be used in the
manufacture of excisable goods.
Manufacture outside a warehouse
27.
A person who
(a)
manufactures excisable goods in the country in
premises that is not a warehouse,
(b)
stores excisable goods on which excise duty has not
been paid in premises that is not a warehouse, or
(c)
removes excisable goods on which excise duty has not
been paid from premises that is not a warehouse,
shall pay an administrative penalty equal to two
times the amount of duty payable in relation to the
excisable goods to the Commissioner- General; and in
addition commits an offence and is liable on summary
conviction to a fine of not more than three times
the amount of excise duty payable in relation to
those excisable goods or to a term of
imprisonment of not more than one year or to both.
Failure to enter into bond or lodge security
28.
(1) A person who
(a)
manufactures excisable goods in the country or
enters excisable goods for home use without having
entered into a bond or lodged a security with the
Commissioner-General; or
(b)
enters for home use excisable goods manufactured in
the country without complying with section 7 (4),
commits an offence and is liable on summary
conviction to a fine of not more than two times the
amount of excise duty referred to in paragraph
(a) or (b) or to a term of imprisonment
of not more than one year or to both.
(2) In addition to the penalty provided under
subsection (1) the person shall pay a penalty equal
to
(a)
two times the amount of excise duty payable on the
excisable goods entered for home use during the time
when the person did not enter into the bond or
lodged a security as required; or
(b)
two times the amount of excise duty payable by the
person on each non-compliant entry of excisable
goods for home use when paragraph (1) (b)
applies.
Failure to give notice
29.
(1) A manufacturer who fails to give notice to the
Commissioner- General as required under this Act
commits an offence and is liable on summary
conviction to a fine of not more than two hundred
penalty units for each failure or to a term of
imprisonment of not more than six months or to both.
(2) In addition to the penalty provided under
subsection (1) the manufacturer shall pay a penalty
of not more than five hundred currency points for
each failure.
Failure to provide office accommodation
30.
A manufacturer who fails to provide office
accommodation to an officer as required under
section 24 (4) shall pay an administrative penalty
of not more than five hundred currency points for
each day that the manufacturer fails to provide the
accommodation.
Failure to submit a return
31.
A manufacturer who fails to submit to the
Commissioner- General an excise duty return by the
due date is liable to a penalty of five hundred
currency points and a further penalty of ten
currency points for each day that the failure
continues.
Failure to pay tax on due date
32.
A manufacturer who fails to make a payment required
under this Act to the Commissioner-General by the
due date is liable to pay a penalty of fifteen
percent of the amount due and an interest of five
percent of the' amount due for each day that the
failure continues.
Administrative and miscellaneous provisions
Application of other laws
33.
(1) Unless a contrary intention appears, in relation
to excisable goods imported into the country, the
provisions of the Customs, Excise and Preventive
Service (Management) Act, 1993 (P.N.D.C.L. 330)
apply, so far as they are relevant, and with the
necessary exceptions, modifications and adaptations
as if excise duty were an import duty.
(2) The Commissioner-General may exercise a power
conferred on the Commissioner-General by the
Customs, Excise and Preventive Service (Management)
Act, 1993 (P.N.D.C.L. 330) as if a reference to
import duty in that Act includes a reference to
excise duty imposed under this Act on imported
goods.
(3) The Commissioner-General may exercise a power
conferred by the Value Added Tax Act, 2013 (Act 870)
as if a reference to Value Added Tax in that Act
includes a reference to excise duty charged under
this Act.
Security
34.
For purposes of this Act, the Commissioner-General
may require a manufacturer to enter into a general
bond or lodge a security with the
Commissioner-General to continue in force while the
manufacturer remains registered.
Liquor
35.
For purposes of this Act, liquor
(a)
containing more than twenty-four and half percent of
pure alchohol by volume shall not be considered as
wine, and liquor other than wine, containing more
than ten percent
of pure alcohol by volume shall not be considered as
ale, beer, cider perry or stout; and
(b)
containing more than
twenty-four and half per centum of pure alcohol by
volume, liquor other than wine, containing more than
ten percent of pure alcohol by volume, and liquor
other than wine, ale, beer, cider, perry or stout
containing more than one per centum of pure alcohol
by volume shall be considered as spirits.
Regulations
36.
The Minister may, by legislative instrument, make
Regulations to provide
(a)
for administrative matters;
(b)
for matters relating to excise duty returns; and
(c)
generally for carrying into effect this Act.
Interpretation
37. In this Act, unless the context otherwise
requires,
"aircraft" means any apparatus, whether or not
mechanically propelled, which is used for the
transport by air of human beings or goods;
"Commissioner-General" means the
Commissioner-General of the Ghana Revenue Authority
appointed under the Ghana Revenue Authority Act,
2009 (Act 791);
"constitution" means ownership and management
structure;
"entered" means,
(a)
in relation to excisable goods, goods imported,
warehoused, put on board an aircraft or shipped as
stores or excisable goods exported
(i) that the prescribed declaration has been filed
and accepted by the proper officer; or
(ii) that the filing has been electronically
validated and any duties, taxes, levies, fees and
charges due have been paid or security for any
duties, taxes, levies, fees and charges due has been
deposited; and
(b)
in relation to a removal of goods manufactured in
the country, the removal of the excisable goods
under security
"entered for export" means entered for export in
accordance with the requirements of the Customs,
Excise and Preventive Service (Management) Act, 1993
(P.N.D.C.L. 330)
"entered for home use" means
(a)
in relation to excisable goods imported into the
country,
(i) an entry of the goods for home use under the
Customs, Excise and Preventive Service (Management)
Act, 1993 (P.N.D.C.L. 330); or
(ii) if no entry of the goods for home use under the
Customs, Excise and Preventive Service (Management)
Act, 1993 (P.N.D.C.L. 330) is made, an import of
goods that are
considered, under this Act or the Customs, Excise
and Preventive Service (Management) Act, 1993 (P.N.D.C.L.
330) to have been entered for home use; and
(b)
in relation to excisable goods manufactured in the
country, the first removal, other than a removal of
those goods from a warehouse;
"excisable goods" means the goods specified in the
First Schedule to this Act;
"excise duty" means
(a)
the excise duty imposed under this Act; and
(b)
any amount required to be brought to account under
this Act as excise duty or otherwise considered to
be excise duty under this Act;
"exempt goods" means goods that
(a)
are specified in the Second Schedule to this Act; or
(b) are exempted by this Act;
"ex factory price", in relation to goods, means the
sum of
(a)
all costs to manufacture those goods, and
(b)
all profits that a manufacturer takes or is expected
to take in relation to those goods if and when they
are sold in comparable circumstances between
unrelated parties in the open market, as is
considered appropriate by the Commissioner-General;
"export" means the act of taking out or causing to
be taken out any goods from Ghana;
"fair market value" means the consideration in money
which a similar supply would generally fetch if
supplied in similar circumstances at that date in
Ghana, being a supply freely offered and made
between persons who are not associates;
"goods" means excisable goods;
"home use" means consumption, use, or application of
goods in the country;
"import" means to bring or cause goods to be brought
into the country;
"import duty" means a duty of customs charged on
imported goods as prescribed by law;
"manufacture" means make or produce excisable goods,
and may be in the nature of
(a)
all processes, including intermediate or incomplete
processes, undertaken in making or producing the
goods;
(b)
filtering, diluting, or blending excisable goods
with other goods, including other excisable goods;
(c)
putting excisable goods, for the first time, into a
container in which they may be presented for sale or
from which they may be dispensed; and
(d)
labelling or marking, for the first time, containers
filled with excisable goods;
"manufacturer" means a person who manufactures
excisable goods or causes them to be manufactured in
the country and is registered under this Act;
"Minister" means the Minister responsible for
Finance;
"officer" means a person who is authorised by the
Commissioner-General to carry out the functions or
duties of an officer under this Act;
"open market value" means the fair market value as
determined by the Commissioner-General;
"person" includes an individual, a partnership, a
company, a trust, the estate of a deceased
individual, a government or a body that is a
society, a union, a club, an association, a
commission or another organisation of any kind;
"premises" includes
(a)
a place, whether or not that place is enclosed or
built on; and
(b)
a structure, vehicle, vessel, or aircraft;
"proper officer" means an officer whose rights or
duty it is to exact the performance of or to perform
the act referred to;
"registered manufacturer" means a person who is
registered under this Act;
"related persons" means
(a)
a natural person and a relative of that natural
person;
(b)
a trust and a person who is or may be a beneficiary
in respect of that trust or whose relative is or may
be a beneficiary;
(c)
a partnership or company other than a stock company
and a member of that partnership or company who, on
account of shares personally held together with
shares or other membership interests held by persons
who are related to that member or capital of the
partnership or company; or
(d)
a shareholder in a stock company and the stock
company if the shareholder on account of shares
personally held together with shares held by persons
who are related to the shareholder under a provision
of this definition and the shareholder
(i) controls twenty five percent or more of the
voting power in the stock company; or
(ii) owns twenty five percent or more of the rights
to dividends or of the rights to capital;
or
(e)
two companies, if a person, either alone or together
with a person who is related to that person under
another provision of this definition
(i) controls twenty five percent or more of the
voting power in both companies; or
(ii) owns twenty five percent or more of the rights
to dividends or of the rights to capital
in both companies; and, for purposes of paragraphs
(c), (d), and (e), a person is treated
as owning, on a pro rata basis, shares or other
membership interests which are owned or controlled
by the person indirectly through one or more
interposed persons;
"removal", in relation to excisable goods
manufactured in the country, refers to the movement
of those goods from a ware- house to another place
in the country; and excisable goods that are loaded
onto a conveyance are considered to be removed;
"sale" means an agreement of purchase and sale, or
any other transaction including a barter
transaction, under which ownership of goods or the
right to dispose of goods as
owner, passes or is intended to pass from one person
to another for consideration;
"ship" means floating craft of every description but
does not include aircraft;
"similar supply" in relation to a taxable supply,
means a supply that is identical to, or closely or
substantially resembles, the taxable supply, having
regard to the characteristics, quality, quantity
supplied, functional components, reputation of, and
materials comprising the goods and services which
are the subject of the taxable supply;
"spirits" means spirits of any description and
include all liquors mixed with spirits and all
mixtures, compounds or preparations made with
spirits; and
"warehouse" means a place approved by the
Commissioner- General for the deposit, keeping,
manufacture or securing of excisable goods.
Transitional provisions
38.
(1) This Act applies to excisable goods imported
into or manufactured, in the country only if
(a)
the goods are imported or manufactured on or after
the commencement date of this Act; or
(b)
the goods were imported or manufactured before the
commencement date but are entered for home use on or
after the commencement date.
(2) A person who carries on a business of
manufacturing excisable goods before the
commencement of this Act and continues to carry on
that business but has not been registered under the
Customs, Excise and Preventive Service (Management)
Act, 1993 (P.N.D. C.L. 330) shall within fourteen
days of the commencement of this Act apply for
registration and the Commissioner-General shall
process the application and notify the
applicant of the decision within one month of
receiving the application.
(3) A person who is licensed to manufacture
excisable goods under the Customs, Excise and
Preventive Service (Management) Act, 1993
(P.N.D.C.L.330) before the commencement of this Act
is deemed to have been registered.
(4) Where a person is required to be registered
under this Act to manufacture excisable goods only
from an approved warehouse, the person shall within
a period of two months from the commencement of this
Act comply with the provisions of this Act relating
to registration and approved warehouses.
(5) During the period referred to in subsection (4)
(a)
an unregistered person who manufactures excisable
goods shall comply with this Act as if the person
were registered; and
(b)
the premises on which the person manufactures the
goods shall be considered to be an approved
warehouse.
FIRST SCHEDULE
(Sections 1, 5 and 37)
GOODS LIABLE TO EXCISE DUTY
Tariff No.
|
|
Commodity Description
|
Rate of Duty
|
l. |
(a) |
Waters, including mineral
water |
17.5 per centum of the ex- factory
price |
|
|
of all description
|
|
|
(b) |
Distilled, bottled water
|
17.5 per centum of the ex
factory price |
|
(c) |
Sachet water
|
|
|
o per centum
|
2. |
Malt drink; Percentage use of
local raw |
|
|
material |
|
|
o per centum of local raw
material |
17.5 per centum of the ex
factory price |
|
|
|
|
|
30 per centum of local raw
material |
12.5 per centum of the ex
factory price |
|
|
|
|
|
50 per centum of local raw
material |
7.5 per centum of the ex-
factory price |
|
|
|
|
|
70 per centum of local raw
material |
.2.5 per centum of the ex-
factory price
|
|
|
|
|
3. |
Beer, stout other than
indigenous beer: |
|
|
Percentage use of local raw
materials |
|
|
o per centum of local raw
material |
47.5 per centum of the ex
factory price |
|
|
|
|
|
30 per centum of local raw
material |
30 per centum of ex-factory
price |
|
|
|
|
|
50 per centum of local raw
material |
20 per centum of ex-factory
price |
|
|
|
|
|
70 per centum of local raw
material |
10 per centum of ex-factory
price |
|
|
|
|
4. |
Wines including sparkling
wine |
22.5 per centum of ex-factory
price |
|
|
|
|
Tariff No.
|
|
|
Commodity Description
|
Rate
of Duty |
5. |
Spirits, including "Akpeteshie":
|
|
|
|
(a) |
Distilled or rectified
|
25 per centum of the
ex-factory price |
|
|
|
|
|
|
|
(b) |
Blended or compounded
|
25 per centum of the
ex-factory- price |
|
|
|
|
|
|
|
(c) |
Other: |
|
|
|
|
(i) |
For use solely in
laboratories |
o per
|
centum |
|
|
|
or in the compounding of
drugs. |
|
|
|
|
(ii) |
Denatured to the satisfaction
of |
10 per centum of the
ex-factory price - |
|
|
|
the Commissioner-General
|
|
|
|
|
(iii) |
"Akpeteshie"
|
20 per centum of the
ex-factory price |
|
|
|
|
|
|
6. |
Tobacco Products:
|
|
|
|
(a) |
Cigarette |
150 per centum of the
ex-factory price - |
|
|
|
|
|
|
|
(b) |
Cigars |
150 per centum of the
ex-factory- price |
|
|
|
|
|
|
|
(c) |
Negrohead |
¢12.00
|
per kg |
|
(d) |
Snuff and other tobacco
|
170.65 per centum of the
ex-factory price |
|
|
|
|
|
|
7. |
Plastic and Plastic products
listed under |
10 per
|
o centumf the ex- factory
price |
|
Chapters 39 and 63' of the
Harmonised |
|
|
|
System and Custom Tariff
Schedules, 2012 |
|
8. |
Other Products:
|
|
|
|
(a) |
Textiles |
o per
|
centum |
|
(b) |
Pharmaceuticals
|
o per
|
centum |
1.The
excise duty indicated in the third column in
relation to the goods listed under
Commodity Description for Tariff No.7 shall be
(a)
computed on the Cost, Insurance and Frieght (CIF)
value of the goods listed in the second
(b)
paid at the point of entry
2.Not
less than fifty percent of the revenue accruing
under Tariff No. 7 shall be paid
into a fund designated as "Plastic Waste Recycling
Fund".
3.For
the avoidance of doubt, excise duty is computed on
the Cost, Insurance and
Freight at the point of entry.
SECOND SCHEDULE
(Sections 2 and 37)
EXEMPT GOODS
Tariff No. |
|
Commodity Description |
Rate
of Duty |
2. I |
The President of the Republic of Ghana: All
goods |
0% |
|
purchased From a manufacturer for the use of
the |
|
|
President of Ghana. |
|
2.2 |
Government of Ghana contracts where the
contract is |
0% |
|
duly approved by Parliament: |
|
|
All goods purchased from a manufacturer by a
person |
|
|
under contract to the government where such
exemption |
|
|
From excise duty Forms part of the terms of
the contract. |
|
2.3 |
Licensed manufacturers: |
|
|
All goods purchased by a manufacturer
licensed under |
0% |
|
this Act |
For the purpose of manufacturing excisable
|
|
|
goods. |
|
|
2.4 |
Diplomatic Missions: |
|
|
(a) |
All goods purchased For the official use of
any |
0% |
|
|
Commonwealth or Foreign Embassy, Mission
|
|
|
|
or Consulate. |
|
|
(b) |
All goods purchased for the use of a
permanent |
0% |
|
|
member of a Diplomatic Service of any Com-
|
|
|
|
monwealth or Foreign country, exempted by
|
|
|
|
the Minister responsible for Foreign
Affairs. |
|
|
Where with reference to (a) and
(b) above a similar |
|
|
privilege is accorded by the Commonwealth or
Foreign |
|
|
country to the Ghana representative in that
country. |
|
|
(c) |
All goods purchased by personnel engaged by
|
0% |
|
|
an International Agency or in a Technical
|
|
|
Assistance Scheme where the terms of the
|
|
|
|
Agreement made with the Government of
|
|
|
|
Ghana include exemption From excise duty
|
|
|
|
and duly approved by Parliament.
|
|
2.5 |
Non-domestic goods: |
0% |
|
All goods re-exported |
|
Date of Gazette notification: 12th
November, 2014. |