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Ghana's Growth and Sustainability Levy Act, 2023 (Act 1095), enacted on April 3, 2023, introduced a significant fiscal measure aimed at bolstering government revenue and ensuring economic stability. This Act replaced the National Fiscal Stabilisation Levy Act, 2013 (Act 862), broadening the scope of entities subject to a special levy on their profits before tax or gross production. Initially set to apply for the 2023, 2024, and 2025 assessment years, the levy has since been extended to 2028 by the Growth and Sustainability Levy (Amendment) Act, 2025 (Act 1131). The legislation categorises businesses into different tiers, each with a specific levy rate, and notably stipulates that the levy is not an allowable deduction for corporate income tax purposes. This article delves into the provisions of Act 1095 and its subsequent amendment, highlighting the implications for various sectors and the broader Ghanaian tax landscape.

The Republic of Ghana has, in recent years, embarked on a series of fiscal reforms designed to address macroeconomic challenges, enhance revenue mobilisation, and foster sustainable economic growth. A cornerstone of these efforts is the Growth and Sustainability Levy Act, 2023 (Act 1095), which came into force on April 3, 2023. This legislative intervention marks a pivotal shift in Ghana's tax policy, replacing the erstwhile National Fiscal Stabilisation Levy Act, 2013 (Act 862), and introducing a broader, more comprehensive framework for revenue generation.

The enactment of Act 1095 was a direct response to the pressing need for increased domestic revenue to support the government's economic recovery agenda, particularly in the wake of global economic disruptions. For legal practitioners, understanding the nuances of this Act and its subsequent amendments is crucial for advising corporate clients on compliance, risk management, and strategic financial planning within Ghana's evolving tax environment. This article provides a detailed examination of the Growth and Sustainability Levy, its scope, implications, and the recent legislative adjustments that have further shaped its application.

Prior to Act 1095, Ghana's fiscal landscape included the National Fiscal Stabilisation Levy (NFSL), which was introduced as a temporary measure to generate revenue from specific profitable entities. However, persistent economic pressures, exacerbated by global events such as the COVID-19 pandemic and geopolitical conflicts, necessitated a more robust and enduring revenue strategy. The government's commitment to restoring macroeconomic stability and securing international financial support, including from the International Monetary Fund (IMF), underscored the urgency for comprehensive fiscal adjustments.

In this context, Parliament passed several tax-related laws in early 2023, with the Growth and Sustainability Levy Act, 2023 (Act 1095) being a key component. The Act's primary objective is to impose a special levy to raise revenue for the growth and fiscal sustainability of the Ghanaian economy. It was gazetted on April 3, 2023, and became effective on the same date, signifying an immediate impact on businesses operating within the jurisdiction. The Ghana Revenue Authority (GRA) is mandated to collect this levy and remit it to the Consolidated Fund.

The Growth and Sustainability Levy Act, 2023 (Act 1095), imposes a levy on the profit before tax or gross production of specified companies and institutions. The Act initially applied for the 2023, 2024, and 2025 years of assessment. A critical feature of Act 1095 is its categorisation of entities, with varying levy rates: Category A institutions, including banks, non-bank financial institutions, insurance companies, and telecommunication companies, are subject to a 5% levy on their profit before tax. Category B comprises mining companies and upstream oil and gas companies, which were initially levied at 1% of their gross production. All other entities not falling into Categories A or B are classified under Category C and are liable to pay 2.5% of their profit before tax.

A significant aspect of the levy is its non-deductibility for corporate income tax purposes, meaning businesses cannot treat the levy as an expense when calculating their chargeable income under the Income Tax Act, 2015 (Act 896). This provision effectively increases the overall tax burden on affected entities. Furthermore, the Act contains an override clause, stipulating that the levy applies irrespective of any existing tax holiday or exemption granted to an entity under any agreement or enactment. However, it is important to note that specific stability clauses within agreements with the Government of Ghana may, in certain circumstances, exempt companies from the levy.

Compliance requirements under Act 1095 mandate that persons subject to the levy file an estimate of the levy payable for the year of assessment with the Commissioner-General of the GRA. Payments are due quarterly, specifically on March 31, June 30, September 30, and December 31 of each year. The provisions of the Revenue Administration Act, 2016 (Act 915), which govern collection, enforcement, refunds, penalties, and offences, are applicable to the administration of this levy.

Crucially, the Growth and Sustainability Levy (Amendment) Act, 2025 (Act 1131), has introduced significant changes. This amendment extended the application period of the levy from the initial 2025 year of assessment to the 2028 year of assessment, providing a longer-term revenue stream for the government. Additionally, Act 1131 initially increased the levy rate for mining companies and upstream oil and gas companies (Category B) from 1% to 3% of gross production. However, a subsequent amendment in 2026, also under Act 1131, specifically reduced the levy on gold mining companies from 3% back to 1%, aligning with reforms to the minerals royalty framework and a new sliding-scale royalty regime for gold and lithium. This demonstrates the dynamic nature of Ghana's tax legislation and the government's responsiveness to specific industry concerns.

The Growth and Sustainability Levy Act, 2023 (Act 1095), and its subsequent amendments represent a significant and evolving aspect of Ghana's fiscal policy. For legal practitioners, the implications are profound, requiring continuous monitoring of legislative changes and administrative guidelines issued by the Ghana Revenue Authority. The extended application period until 2028, coupled with specific rate adjustments for key sectors like mining, underscores the levy's enduring role in the national revenue strategy.

Attorneys must advise clients on the critical aspects of compliance, including accurate estimation and timely quarterly payments, while also assessing the impact of the non-deductibility clause on their overall tax liability. Furthermore, the interplay between the levy and existing tax holidays or stability clauses in government agreements warrants careful legal analysis. As Ghana continues to navigate its economic trajectory, the Growth and Sustainability Levy will remain a central consideration for businesses and their legal advisors, necessitating proactive engagement with tax planning and regulatory adherence.