Understanding Ghana’s Growth and Sustainability Levy Act of 2023 (ACT 1095)

On 3rd April 2023, Ghana ushered in a new fiscal measure with the passage of the Growth and Sustainability Levy Act, 2023 (“the Act”), which repeals and replaces the National Fiscal Stabilisation Levy Act, 2013 (Act 862).

However, despite the repeal, the NFSL continues to apply in respect of years of assessment commencing prior to 3rd April 2023. The transition ensures continuity of obligations for tax periods predating the enforcement of the new regime.

The object of the Act is to generate critical revenue to support Ghana’s economic growth and ensure fiscal sustainability. The Levy is imposed on specified entities in respect of profits before tax or gross production, covering the 2023 to 2025 years of assessment.

According to government estimates, the Levy is expected to generate approximately GHS 2.216 billion in revenue for the 2023 fiscal year alone.
Background and Policy Justification The dual shocks of the COVID-19 pandemic and the Russia-Ukraine conflict disrupted economies globally, leading to significant revenue shortfalls, currency depreciation, and increased public sector expenditure in Ghana. The resulting
macroeconomic instability prompted a series of policy interventions aimed at restoring economic balance.

One such intervention is the Growth and Sustainability Levy Act, which forms part of a broader strategy to widen the tax base, address budget deficits, and meet fiscal targets under both domestic economic reforms and international support arrangements.

The Act replaces the National Fiscal Stabilisation Levy, which was first introduced in 2013 as a temporary measure to raise revenue from select profitable entities. The new law broadens the coverage and shifts the focus from short-term stabilisation to long-term economic resilience and sustainability.

Scope and Structure of the Levy
The Act imposes a quarterly levy on profits before tax or gross production, depending on the nature of the entity. The applicable rates and categories are set out in the Schedule to the Act as follows:

Levy Categories and Rates