Legislation Detail

EXEMPTIONS  ACT, 2022                                                 Act 1083

ARRANGEMENT    OF SECTIONS

Section

Preliminary Provisions

2.  Application

3.  Definition of exemption

General Provisions

4.   General responsibility

5.  Responsibility of the Minister

6.  Negotiation   and approval of exemption

Covered Entities and Other Relevant Agencies

7.   Procedure for granting exemption to covered entities

Privileged Persons

8.  The President

9.  Diplomats and diplomatic missions

10.  Persons with disability

11.  Religious organisations

12.    Donor and charity organisations

Private Businesses

13.    Free zone enterprises

14.  General tax incentives

15.  Special tax incentives for strategic investments

16.  Procedure for granting special tax incentives

Personal Effects, Foodstuffs and Equipment for Trial

17.    Baggage and effects

18.  Foodstuffs

19.  Equipment, replacement parts and others for production trial

Development Partner Projects

20.   Executed treaties, agreements or conventions

21.  Technical cooperation programmes or projects

22.  Programmes  or projects funded  with grants

23.   Concessional facility projects

24.   Commercial Government projects

Security Transactions, Administrative Fees and Transnational Levies

25.  Transactions by State security agencies

26.  Administrative fees and other charges

27.  Transnational levies

Miscellaneous Provisions

28.  Monitoring and reporting of exemptions

29.    Review of tax expenditure

30.  Transfer of ownership of exempt item by holder of an exemption

31.  Local content

32.  Offences and penalties

33.    Regulations

34.  Interpretation

35.  Consequential amendments

36.  Repeals, savings and transitional provisions

SCHEDULE

Depreciation of  Tax Liability

THE ONE THOUSAND AND EIGHTY-THIRD

ACT

OF THE PARLIAMENT OF THE REPUBLIC OF GHANA ENTITLED

EXEMPTIONS   ACT, 2022

AN ACT to regulate the application of tax exemptions   and other exemptions and to provide for related matters.

DATE OF ASSENT:  12^th September, 2022

PASSED by Parliament and assented to by the President

Preliminary Provisions

Object of this Act

1.  The object of this Act is to

         (a)  provide for an exemptions regime   and the scope   of exemptions;

(b)  set criteria for exemptions;

(c)  provide for the administration   of exemptions; and

(d)  provide for monitoring, evaluation, reporting and enforcement of exemptions.

Application

   2.  (1)  This Act applies to all exemptions.

(2)  This Act shall be read together with any other enactment relevant to taxes, levies, rates, duties, fees and charges and  public financial  management.

(3) Where  there  is a conflict or inconsistency between the provisions  of this Act and  any other enactment  related  to exemptions, the provisions of this Act shall prevail.

(4) This Act is a "tax law" for purposes of the Revenue Administration Act, 2016 (Act 915).

Definition of exemption

3. (1)  For the purposes  of this Act,  an exemption is

(a)  a waiver or variation of a tax, levy, rate, duty, fee or charge provided  for under  an enactment,  or

(b)  a variation  of  the timing  of  the payment  of  a tax,  levy, rate, duty, fee or charge which results in a reduction in the effective liability of the payer.

      (2)  Despite  subsection  (1),  the  power of the Commissioner General to remit assessed tax or extend the date on which a tax is payable shall continue to apply.

General Provisions

Generalresponsibility

4. (1)  A person shall not be granted an exemption unless the person is entitled to the exemption  under this Act.

(2) A person shall not grant an exemption to another person unless the person is authorised  to grant the exemption  under this Act.

(3) A person  shall not  waive  or vary  a domestic  indirect  tax  or enter into an agreement  to waive or vary a domestic indirect tax unless expressly provided for in this Act or the relevant tax law.

(4)  A person who is granted an exemption  under this Act shall not transfer the exemption  to another  person.

(5) A person shall not waive or vary a tax, levy, rate, duty, fee or a charge imposed by a Local Government  Authority  unless the waiver or variation is authorised  under   a bye-law  of  the  Local  Government Authority.

Responsibility of the Minister

5. (1) The Minister  shall

(a)  seek Executive approval for an exemption; and

(b)   submit a request for the exemption to Parliament.

(2) The Minister  shall, on receipt of a request for an exemption,

(a)   assess the request for the exemption;  and

      (b)  ensure that the exemption is consistent with the economic management priorities of Government and the general policy of the Government on exemptions.

(3) The Minister  shall issue administrative guidelines on

(a)  the procedure  for an application for an exemption; and

(b)  the modalities  for assessing and granting exemptions.

(4)  The  Minister shall, subject to Executive approval, seek the approval of Parliament by resolution for a request for exemption in accordance with article 174 of the Constitution.

(5) The Minister  shall

(a)  monitor the use of an exemption as an economic management tool;  and

(b)  report on the impact of  an exemption in the annual national budget presented to Parliament.

(6)  The  Minister shall inform Cabinet on matters relating to exemptions.

(7)  The  Minister shall ensure that covered entities and other relevant stakeholders are sensitised on any new law or requirement instituted to

         (a)  improve the effectiveness and efficiency of the exemptions regime;  or

(b)   ensure compliance with this Act.

Negotiation and approval of exemption

6.  (1) A person shall not negotiate or enter into an agreement to grant an exemption  except with the prior written  approval of the Minister.

     (2) An agreement  to grant an exemption is void unless subsection (1) is complied with.

     (3) Where a request for an exemption is contained in a contract to be laid before Parliament  for approval, the contract shall be accompanied with

(a)  a detailed  assessment of the value of the anticipated exemptions contained in the contract;

     (b)  the list of items and taxes to which the exemptions are applicable;

     (c) a limit on the total value of the exemptions to be granted under that contract;

(d)   a time limit on the exemption  to ensure that the exemption does not exceed the duration  of the contract;

(e)  the impact of the exemption  on programmed  revenue;

(f)   details of the beneficial  owners of the entities involved in the contract;  and

(g)  a value for money assessment report.

(4) A contract that contains an exemption  shall not be submitted to Parliament  unless subsections (1) and (3) are complied with.

(5) Parliament may vary the exemptions in an application for exemption laid before Parliament.

(6) Where  Parliament varies the exemptions referred to in subsection (5), the Minister shall, within fourteen days from the date the Minister receives the variation  notification, notify the person concerned.

Covered Entities and other Relevant Agencies

Procedurefor grantingexemptionto covered entities

7.   (1) An  application  for an exemption  by a covered entity shall be made to the Minister.

     (2) The Minister  shall assess the application

     (3)  The Minister may make a recommendation to Cabinet  for consideration.

     (4)  The recommendation referred to in subsection (3) shall state clearly the basis for the recommendation.

    (5) Where the Minister, on an application for an exemption by a covered entity, makes a recommendation for Cabinet approval, Cabinet shall, upon approval, direct the Minister to seek Parliamentary  approval.

              (6) Where Cabinet does not approve of the recommendation,  the Minister shall inform the covered entity of the decision of Cabinet within fourteen  days of receipt  of the decision.

  (7)   Where the Minister does not make a recommendation to Cabinet for an exemption, the Minister shall inform the covered entity of the decision within fourteen days of receipt of the application.

Privileged Persons

The President

8.  (1)   The salary, allowances  and facilities,  of the President,  and on leaving office,  the pensions and gratuity of the President are exempt from tax in accordance  with clause (5) of article 68 of the Constitution.

(2)  Goods  procured  for the use of the President  or Vice-President are exempt from customs duties and customs tax in accordance  with the procedure under  section 7.

(3) A person who makes an application for an exemption  in the name of the President  or Vice-President which is not for the use of the President or Vice-President commits an offence   and  is liable on summary conviction to a fine of not less than one thousand penalty units and not more than two thousand  and five hundred penalty units or to a term of imprisonment of not less than  six months and not more than five years or to both.

(4)  Where the offence under subsection (3) results  in the loss of revenue, the person who committed the offence is liable to pay three hundred percent of the loss in addition to the punishment  imposed under subsection (3).

Diplomats and diplomatic missions

9.  (1) Goods and vehicles imported by or for the official use of a body of the United Nations,  the African Union, the Economic Community of West African States, the Commonwealth, a diplomatic mission or a consulate are exempt from the payment of customs duties and customs taxes.

(2)   A  diplomat or diplomatic mission shall be granted an exemption where a similar exemption is granted to a Ghanaian diplomat or diplomatic mission in the country of that diplomat.

(3) On the first arrival in the country of an employee of the United Nations,  the African Union, the Economic Community of West African States, the Commonwealth, a diplomatic  mission  or a consulate, the household or personal effects of the employee, if that  employee  is not engaged in any other business  or profession in the country, are exempt from the payment  of customs  duties and customs taxes.

(4) Goods and vehicles imported by or for the use of a permanent member of the United Nations, the African Union, the Economic Community of West African  States, the  Commonwealth,   a diplomatic mission or a consulate  are exempt from the payment  of customs duties and customs taxes.

(5) For the purposes of this section, the Minister responsible for Foreign Affairs shall submit to the Minister responsible for Finance, on an annual basis, a list of the diplomats and  diplomatic  missions that qualify for exemption.

(6) A diplomat or a diplomatic mission shall be granted an exemption based on the list submitted under subsection (5).

Persons with disability

10.  The following disability-related items are exempt from the payment of customs duties and customs taxes:

(a)  books, publications  and documents  specially designed for the use of persons  with disability on the recommendation of the Minister responsible for Social Welfare;

(b)  other items specially designed for the education,  scientific or cultural advancement of persons with disability, imported by institutions or organisations recommended by the Minister  responsible  for Social Welfare  and  approved  by the Minister;

(c)  vehicles specially designed, adapted or modified for use by persons  with  disability  certified by the relevant  licensing authority  and approved  by the Minister;  and

(d)  specially designed items imported by persons with disability for their educational,  scientific or cultural  advancement.

Religious organisations

11. (1) The following items imported for religious purposes are exempt from the payment  of customs duties and customs taxes:

(a)  altar bread;

(b)  communion wafer;

(c)   altar wine;

(d)  Catholic rosary;

(e)   altar frontal;

     (i)   altar linen and vestments excluding choir robes and pulpit gowns;

(g)  Zamzam;

(h)   Tasbi;

(i)   sajjada; and

    (j)   other similar items imported for religious purposes used exclusively for  worship recommended by the Minister responsible for Religious Affairs and approved by the Minister.

(2) For the purposes  of subsection (1),

"sajjada"  means  an Islamic prayer mat or rug;

" Tasbi" means an Islamic rosary;  and

"Zamzam"  means holy water imported  from Mecca.

Donor and charity organisations

12. (1) An item for

(a)  educational  purposes,  and

(b)  health purposes

imported by a development partner, a charity organisation, a philanthropist or any other not-for-profit organisation as a gift for charitable purposes is, subject to subsection (2), exempt from customs duties and customs taxes where the application is supported by a recommendation by the relevant sector Minister and approved by the Minister.

     (2) An application  for the exemption  referred to in subsection (1) shall not be processed unless the application

    (a)  is made by the official head  of the identifiable group that benefits from the gift; and

   (b)  spells out in detail  the  specific items and the  quantity  of each item expected in the donation.

   (3) An application  for the exemption  referred to in subsection (1) shall be accompanied  with

             (a) the background information of the donor  or charity organisation where the donor or charity organisation is new; or

           (b)  a report of the activities of the donor or charity organisation in the beneficiary social, educational or health  institution in the past twenty-four months, where the donor or charity organisation is already in existence.

Private Businesses

Free zone enterprises

13.  (1)  A free zone enterprise  that imports items into a free zone or single factory zone is exempt from customs duties and customs taxes.

(2) A company  licensed  as a free zone  enterprise  in accordance with the Free Zone Act, 1995 (Act 504) but that does not export

(a)  a minimum of seventy  per cent of the output of the company,  or

(b)  the relevant  percentage  as specified in the licence  issued by the Free Zone Authority

shall pay three hundred  per cent of all taxes due.

(3) The Ghana Revenue Authority shall recover the taxes due from a free zone enterprise under subsection (2).

(4)  A free zone  enterprise shall submit an annual report to the Ministry for each year of operation to ensure continuing  eligibility.

(5) The annual report referred to in subsection (4) includes

(a)  the number  of employees;

(b)  employee taxes;

(c)   annual  turnover;

(d)  the  percentage of goods exported with full export documentation and destination; and

(e)   exemptions granted  to the free zone enterprise  during the period.

Generaltax incentives

14.   (1) The  Minister may, on the recommendation of the relevant sector Minister and with the approval of Cabinet, by legislative instrument, make  Regulations to grant an industry-specific or programme-specific tax concession for an industry or investment programme.

(2) Where  the tax concession is on customs  duties and customs taxes, the list of the items to which the concession  applies and the exact concessional rate for each item shall be provided in the Regulations made under this Act.

(3) Where the State seeks to take up a reciprocal carried interest in a business that accesses general tax incentives, the particulars of the carried interest shall be specified in the Regulations  made under this Act.

Special tax incentives for strategicinvestments

15.  (1) The State may, in addition to granting a general tax incentive to a sector in accordance with an enactment,  grant a specially-negotiated tax  exemption  for  strategic  investment  where   the  State   takes   a commensurate  equity stake in the investment project.

(2)  An entity that cedes an equity stake to the State in return for a tax incentive shall have an unqualified right to buy back the equity stake of the State at the prevailing market price.

Procedure for grantingspecial tax incentives

16. (1) Cabinet shall,  for the purpose of granting special tax incentives and  promoting  major  investments, determine the priority areas of economic investments.

(2) The Ghana  Investment Promotion Centre shall, within thirty days after the determination  of the priority areas referred to in subsection (1),  publish the priority  areas

(a)  in the  Gazette;

(b)   on the website of the Ghana Investment Promotion  Centre;

and

(c)   in a daily newspaper  of national  circulation.

(3) An investor that seeks to invest in a priority area may apply to the Ghana Investment Promotion Centre stating clearly the cost details of the investment and the exemptions  required.

(4)  The Ghana  Investment  Promotion  Centre shall, upon receipt of an application  in subsection (3) and in consultation  with the relevant covered entity,

(a)  make a determination  whether the investment is within the priority areas of economic  investment; and

(b) communicate the decision  of the Ghana  Investment Promotion  Centre to the applicant within thirty days after the receipt  of the application.

(5) Where the Centre determines that the investment for which the tax exemptions  are being requested is in a priority area of economic investment, the Chief  Executive Officer of the Centre shall,  within  five days of making the decision,  forward the application  to the Minister.

(6) The Minister  shall, on receipt of the request from the Centre, enter into negotiations  with the prospective investor to arrive at the

(a)  cost details of the investment;

(b)  exact  scope  and  details  of the exemptions  to be granted;

and

     (c)   commensurate  equity stake that the State may take in the investment in return for the revenue forgone in granting the exemptions.

(7) The Minister shall, on a successful conclusion of the negotiations in subsection (6), take immediate steps to procure the necessary approvals from Cabinet and Parliament  for the investment incentives agreement to be signed between the Ministry  and the prospective investor.

Personal Effects, Foodstuffs and Equipment for Trial

Baggage and effects

17. (1) Baggage of passenger,  accompanying  the passenger travelling into the country, but not including goods for sale, barter, exchange or as gift is exempt from customs duties and customs taxes.

(2) A personal effect, not being merchandise, of a Ghanaian  who dies in a place outside the jurisdiction  of Ghana  is exempt from customs duties and customs taxes.

(3) The Minister shall, by Regulations, provide for the permissible quantities  and kinds of imports  to which this section applies.

Foodstuffs

18. The  following imported  items of West Africa  origin are exempt from the payment  of customs  duties and customs taxes:

(a)  raw foodstuff;

(b)  fresh, chilled or frozen fish caught by Ghanaian owned vessels, trawlers or canoes; and

(c) dried, smoked or salted fish.

Equipment,replacementpartsand others for production trial

19.  Equipment, replacement parts and kits for production trials imported by a manufacturer or assembler of plants and machinery, including an automobile

    (a)  registerd by the Ministry responsible for trade and industry;

   (b)  recommended   by the Minister  responsible  for trade  and industry;  and

  (c)   approved by the Minister 

are exempt from customs duties and customs taxes.

Development  Partner Projects

Executed treaties, agreementsor conventions

20.  (1)  An exemption from the payment of customs duties and customs taxes may be granted under a treaty, agreement or convention executed by or under the authority of the President after ratification by Parliament.

(2) Each exemption  under subsection (1) shall be considered  on a case-by-case basis.

         (3)  The  Minister shall secure approval from Cabinet and Parliament before the exemption referred to in subsection (1) takes effect.

(4) Where an item to which an executed treaty, agreement or convention  applies is produced  locally, a contractor under the executed treaty, agreement or convention shall procure the item from the local market and the Minister  shall not grant  an exemption  in respect of the executed treaty, agreement  or convention.

Technical cooperation programmes or projects

21. (1) Goods imported for use by an International Agency for purposes of a technical cooperation programme or project, shall be granted the exemption required by the agreement governing the particular programme or project.

(2) Household  goods imported  for the use of personnel engaged by an International Agency under a Technical Assistance Programme or project may be exempt from the payment  of customs duties and customs taxes on the first arrival of the personnel in the country.

(3) For purposes  of this section, the International Agency shall submit to the Minister through  the relevant sector Minister, a list of key officers and positions that qualify for exemption.

(4)  The Minister shall secure approval from Cabinet and Parliament before the agreement referred to in subsection (1) takes effect.

Programmes or projects funded with grants

22. (1) A programme or a project fully funded with  a grant may be granted  an exemption  from the payment  of customs duties and customs taxes in the agreement governing the particular  programme  or project.

(2) Each exemption under subsection (1) shall be considered on a case-by-case  basis.

(3) The Minister shall secure approval from Cabinet and Parliament before the exemption referred to in subsection (1) takes effect.

(4)  Where  an item  to be used  for the programme or project  is produced locally, the contractor shall procure the item from the local market and the Minister shall not grant an exemption in respect of the programme or project.

Concessional facility projects

23.   (1) The Minister  shall not seek approval for an exemption  for a project funded with a concessional facility unless the concessional facility agreement requires the exemption.

(2) Each exemption under subsection (1) shall be considered on a case-by-case basis.

(3) The Minister shall secure approval from Cabinet and Parliament before the exemption referred to in subsection (1) takes effect.

(4)  Where  an item  to be used  for the  project funded  with  the concessional   facility is produced  locally, a contractor  under  the project funded with the concessional facility shall procure the item from the  local market  and  the  Minister  shall not  seek approval  for an exemption  in respect of the project funded with the concessional  facility.

Commercial Government projects

24. (1) Goods, works or services imported or procured by Government or a covered entity from a supplier or contractor are subject to the payment of customs duties and customs taxes and domestic taxes.

(2) A supplier or contractor who supplies  goods,  works or services to a covered entity shall not be relieved of the obligation of that supplier or contractor  to charge value  added  tax  or any other  tax on a taxable supply.

(3)  A person  who  acts  on behalf  of Government   or a covered entity and signs a contract  that

(a)  exempts  a supplier  or contractor from the payment of customs duties and customs taxes or the payment of domestic taxes,  or

(b)  relieves a supplier or contractor from the obligation of that supplier or contractor to charge value added tax on a taxable supply

commits an offence and is liable on summary conviction to a fine equivalent  to three hundred percent of the value of the unpaid customs duties and customs taxes, uncharged value added tax and other unpaid domestic taxes or to a term of imprisonment  of not less than six months or to both.

(4) Without limiting the sanction applied in accordance with subsection (3), a supplier or contractor that is unlawfully exempted from the payment of customs duties and customs taxes, or domestic taxes or that is unlawfully relieved of the obligation to charge value added tax on a taxable supply, shall pay to the State in full the unpaid customs duties, value added tax, other domestic taxes and the applicable interest and penalties.

(5) A supplier or contractor that pays to Government  or a covered entity unpaid customs duties and customs taxes, unpaid value added tax and unpaid domestic taxes shall not have a right to recover the amount paid or any part of the amount paid from Government,  the covered entity or the individual  that procured the supply.

Security Transactions, Administrative  Fees and Transnational Levies

Transactions by State security agencies

25.  (1) A  State  security agency shall, for the purpose of this Act, be considered a "covered  entity"  and the provisions  on exemptions  in the procurement  of goods, works or services apply.

(2) Despite  subsection (1), the  following items are exempt from customs duties and customs taxes and other fees, rates, levies and charges:

(a)  articles, arms, ammunitions, uniforms, accoutrements and equipment including vehicles and musical instruments certified by the relevant sector Minister and approved by the Minister  to be imported by a State security agency for the use of a State security agency or in cooperation with other States for

(i)    defending  the territorial  integrity of the State; or

(ii)  participating  in international  peace-keeping;

(b)  parts, components or sub-assemblies of an item specified in paragraph (a) to be imported  for incorporation in or fitting into that item;

(c)  parts, components or sub-assemblies of an item  specified in paragraph (a) for the repair, refurbishment, servicing or maintenance of that item;

(d)  goods imported for training in or testing of an item specified in paragraph  (a);

(e)  articles, arms, ammunitions, uniforms, accoutrements and equipment  including vehicles donated for the use of a State security agency

(i)   by a foreign Government,

(ii)  by an international  organisation,  or

(iii) under  a Technical Cooperation  Agreement;  and

(f)   goods, excluding vehicles, that  are imported  by an officer of a State security agency returning to the country to resume residence after participating in international peace keeping or an exchange programme.

(3) Despite subsections (1) and (2), a resident person that supplies goods, works and services to a security agency is not exempt from the payment  of import  taxes.

(4) For the purposes of subsection (2) of this section,  "goods" mean goods

(a)  acquired by  an  officer  of  a  State  security   agency  for personal use or household  use,

(b)  owned,  possessed   and  used  by  the  officer   of a  State security agency abroad for a minimum period of six months before the return  of that officer to the country,  and

(c)   accompanying  that officer of a State security agency at the time of return  of that  officer from official mission  abroad to the country 

Administrative fees and other charges

26. (1) A person who uses  a service for which an administrative  fee or other  charge is  chargeable  under  the Fees  and  Charges  (Miscellaneous Provisions) Act, 2022 (Act 1080) is not exempt from the payment  of the associated  administrative  fee or charge.

Transnational levies

27.  (1) A person  shall not be exempted  from a levy imposed  as an obligation to a regional or sub-regional  organisation  in the nature  of the African Union Levy or the Economic  Community  of West African States Levy  unless  the  exemption   is  sanctioned   by the  relevant  regional  or sub-regional  organisation.

(2) Subsection  (1) does  not  apply to a diplomat  or a diplomatic mission.

Miscellaneous Provisions

Monitoring and reporting of exemptions

28.  (1) A person  that  is granted  an exemption   shall  submit  to the Commissioner-General   a statement  of exemptions  utilised in a year of assessment

(a)  at the end of each quarter;  and

(b)  when the person files  a tax return for the year.

(2) The statement  of exemptions  utilised referred to in subsection (1) shall indicate

    (a)  the total value of exemptions  utilised;

    (b)  the tax types of the exemptions  utilised;

    (c)   the legal basis for the exemptions  utilised; and

   (d)  the aggregate amount  of the total exemptions value utilised to date and the remainder  to be used up in future.

(3) The  Commissioner-General shall submit to the Minister an annual report on

(a)  the categories of exemptions  granted;  and

(b)  the total amount of exemptions  utilised by taxpayers.

(4) The Minister shall, as part of the presentation of the  annual budget statement to Parliament, submit an annual report to Parliament on

(a)  exemptions  granted;

(b)  the revenue forgone;

      (c)   explanations on how the exemptions granted are consistent with the economic management priorities of the Government; and

(d)  any other matter that affects the exemptions regime.

Review of tax expenditure

29. (1) The Minister shall establish a schedule to review tax expenditures at least once every five years.

(2) The schedule to review tax expenditures referred to in subsection (1) may group the expenditures  into

(a)  the beneficiaries of the tax expenditure;

(b)  the objective of the tax expenditure;  or

(c)   the policy rationale  for the tax expenditure.

(3) The review of each tax expenditure  item includes

(a)  the date the tax expenditure  was created and the statutory or legal citation;

(b)  the purpose, intent and goal of the tax expenditure and whether the tax expenditure is an effective means of accomplishing the purpose, intent and goal of the tax expenditure;

(c)  the fiscal impact  of the tax expenditure including past fiscal impacts and expected future fiscal impacts;

   (d)  the  economic impact of the tax expenditure including revenue loss compared  to economic  gain and jobs created, retained  or lost as a result of the tax expenditure;

(e)   the return  on the investment  made by the tax expenditure and the extent to which the tax expenditure is a cost effective use of resources; and

(f)   similar tax expenditures, if any, offered by other States and the impact of the tax expenditure on national and regional economic competitiveness.

(4)  The schedule to review a tax expenditure referred to in subsection (1) may provide for a public hearing on the tax expenditure being reviewed.

Transfer of ownershipof exempt item by holder of an exemption

30. (1) Where a holder of an exemption seeks to transfer ownership of an item exempted under this Act, the holder of the exempt item shall seek approval from the Ghana  Revenue Authority.

(2) Where  goods and vehicles, at the time of clearance  for home consumption,  have been exempted  from the payment  of customs duties and  customs  taxes  and  are subsequently,  upon  application  to be used contrary to the condition for the exemption,  the tax liability at the time of the entry shall be depreciated as set out in the Schedule.

Local content

31.  (1) Where an item to be used for a contract is produced locally, the contractor  shall  procure the item from  the local market and the Minister shall not grant an exemption in respect of the item.

(2) This section applies, with the necessary modifications, to skills and technical  know-how.

Offences and penalties

32. (1) A person  acting on behalf of the Government  who

(a)  makes an unauthorised commitment for the grant of an exemption,

(b)  provides false information to influence a decision for the grant of an exemption,

(c)   in relation to the management or administration of an exemption,  willfully makes or signs a false documentation, false return  or false entry into records,

(d)  fails to report  knowledge  or information  in respect  of an exemption-related  fraud committed  by a person against the State to the appropriate authority or law enforcement authority,  or

(e)  by wilful act or omission, fails to take action on an exemption-related  fraud reported  to that person

commits an offence and is liable on summary  conviction to a fine of not less than one hundred penalty units and not more than two thousand five hundred penalty units or to a term of imprisonment  of not less than six months  and not more than five years or to both.

(2) A payer of tax, levy, fee, rate, duty or charge who provides false information to influence  a decision  relating  to an exemption,  commits an offence and is liable on summary  conviction to a fine of not less than one hundred  penalty units and not more than  three hundred  percent of the value of the exemption  granted  or to a term of imprisonment  of not less than six months  and not more than five years or to both.

(3) Except as otherwise provided in this Act, a person who fails to comply with a provision of this Act commits an offence and where a specific penalty is not provided, is liable on summary conviction to a fine of not  less than  one hundred penalty  units  and  not  more  than  three hundred  percent  of the value of the exemption granted or to a term of imprisonment of not less than six months and not more than three years or to both.

Regulations

33.  The Minister  shall, within  twelve months  after the coming  into force of this Act, by legislative instrument,  make Regulations

(a)  to provide for a list of items to which a tax concession  on customs duties and customs taxes apply and the exact concessional rate for each item;

(b)  to specify the particulars  of carried interest where the State seeks to take up a reciprocal  carried interest in a business that accesses general tax incentives; and

(c)   generally for the effective and efficient implementation  of this Act.

Interpretation

34.  In this Act, unless the context otherwise requires,

"accoutrements"  mean additional items of clothing or equipment to be used by State security agencies;

   "charitable purposes" mean the non-commercial transfer of items donated  for the use of an identifiable group in need; "Commissioner-General"  means the person appointed under section  13 of the Ghana  Revenue  Authority  Act, 2009 (Act 791);

         "concessional  facility" means a loan that has a grant element of thirty-five  per  cent  and  above  with  the  all-in-cost  of the commercial  component  not exceeding two percent;

   "covered  entity" means

(a)   the Executive, Legislature  and Judiciary;

(b)    Constitutional bodies;

(c)   Ministries, Departments,  Agencies and  Local Government Authorities;

(d)   the Public Service;

(e)    autonomous agencies; and

(f)    statutory bodies;

"customs duties and  customs  taxes" include   import   duty, excise duty, import value added tax,  import National  Health Insurance Levy, import Ghana Education  Trust Fund Levy, and Special Import  Levy;

"development  partners"  include International Monetary Fund, World Bank, other bilateral partners  or institutions, other multilateral institutions,  and  aid coordinating  groups;

"fee or charge"  includes rates or any moneys charged or levied under any enactment;

"Ghana Investment  Promotion Centre" means the Centre established by section  2 of the Ghana  Investment Promotion  Centre Act, 2013 (Act 865);

"goods"  means objects of every kind and description such as raw materials, products, equipment and objects in solid, liquid or gaseous form and electricity as well as services incidental to the supply of the goods if the value of those incidental  services does not exceed the value of the goods, and  may be in the  nature of movable tangible property, thermal and electrical energy,  heating,  gas  refrigeration, air conditioning and water, excluding money;

"grant"  means  transfers  made  in cash,  goods  or services for which no repayment  is required;

"Harmonised Commodity Description  and Coding System" means the Harmonised System referred to in the Customs Act, 2015 (Act 891);

"identifiable  group" includes a community, a religious body, a health facility, a training centre, an educational  institution, a registered association  or a relevant government  entity;

"import"  means to bring or cause goods to be brought into the country;

"international agency" means a formal, continuous structure with a global mandate funded by contributions from national governments and established to pursue the objectives of common interest, economic relations  or development cooperation;

"levy" includes any imposition  payable under an enactment; "Local Government  Authority"  means District Assembly or a sub-district structure established under section 3 of the

Local Governance  Act, 2016 (Act 936);

"manufacture" means to make, produce or cause to be made or produced,  goods;

"Minister" means the Minister responsible for Finance;

"Ministry" means the Ministry responsible for Finance;

"persons with disability" means individuals with a physical, mental, or sensory impairment, including a visual, hearing, or speech functional disability which gives rise to physical, cultural or social barriers that substantially limits one or more of the major life activities of those individuals;

"privileged persons" means the President, diplomats, diplomatic missions, persons with disability or any other person or entity recognised under this Act;

"security agency" includes

(a)   the Ghana  Armed  Forces;

(b)   the Internal Intelligence Agency;

(c)    the External Intelligence Agency;

(d)   the Police Service;

(e)    the Prisons Service;

(!)   the Ghana National Fire Service;

(g)   the Immigration Service; and

(h)   the Customs Division of the Ghana  Revenue Authority;

"services" means the furnishing of labour, time or effort not involving the delivery of a specific end product  other than reports, which are merely incidental to the required performance and  may be in the nature  of consulting  and professional and  technical  services excluding  employment  agreements or collective bargaining  agreements;

"supplier  or contractor"  means an entity, person or institution that  is not  publicly-owned or employed in the Public Services in Ghana;

"technical cooperation  programme"  means a technical support related to development,  manufacturing,  assembling, testing maintenance  or technical service in the forms of instruction, training, transmission of knowledge or skills by a development partner  or international  organisation  or agency;

"vehicle"  means a conveyance for the transport by land of goods or persons;  and

"works" include work associated with the construction, reconstruction, demolition, repair or renovation of a building, structure or surface and may be in the nature of site preparation, excavation, erection including erection of a mast for telecommunication business, assembly, installation of a plant,  fixing of equipment  and laying out of materials, decoration  and  finishing,  and any incidental activity under a procurement  contract.

Consequential  amendments

35.  The Ghana  Investment Promotion  Centre Act,  2013 (Act 865) is amended  by the substitution  for section 26 of section  16 of this Act.

Repeals,  savings and transitional provisions

36. (1) A provision  in

(a)  any legislation other than

(i)    the Value Added Tax Act, 2013 (Act 870),

(ii)   the Income Tax Act, 2015 (Act 896),  and

(iii) the Excise Duty Act, 2014 (Act 878),

(b)  a treaty,  agreement  or Convention, or

(c)   a document

that provides  for the grant of an exemption  is repealed. (2) Despite  subsection (1),

(a)  an  exemption-related agreement signed  between the Government and  a person on the basis of a provision repealed by this Act,  or

       (b)  an exemption-related resolution of Parliament passed on the basis of a provision repealed by this  Act

shall  continue  to be valid for the term of the agreement  or resolution.

(3) Within  six months  after the coming into force of this Act,  a person that is  the holder  of an exemption  shall apply to the Minister in order to continue  to benefit from the exemption.

(4) Despite subsection (1), existing provisions in the Customs  Act, 2015 (Act 891) and the Schedules to Act 891,  not specifically repealed by this Act,  shall continue to apply until the Customs  Act,  2015 (Act 891) is revised.

(5) Parts A and B of the Third Schedule of the Customs Act,  2015 (Act 891) are repealed ninety days from the day this Act comes into force.

SCHEDULE

(section 3 0 (2))

DEPRECIATION OF TAX  LIABILITY