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GRA Explains New Digital VAT Collection System, Says No Additional 20% Tax Will Be Imposed

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The Ghana Revenue Authority (GRA) has dismissed reports suggesting that the introduction of a new digital Value Added Tax (VAT) collection system will impose an additional 20 per cent tax on subscriptions and payments for digital services provided by international companies such as Netflix, Google and Amazon.

In a press release issued on Wednesday, October 14, 2026, the Authority clarified that the new system will not introduce a new tax or increase the existing tax rates. Instead, it is intended to improve the collection and accounting of taxes already applicable to digital services supplied by non-resident companies to consumers in Ghana.

The clarification follows recent media reports and public discussions claiming that the new digital VAT collection mechanism would result in an additional 20 per cent charge on users of international digital platforms.

According to the GRA, these reports have created the impression that consumers will be required to pay an extra 20 per cent tax on top of their existing subscription fees. However, the Authority stressed that this is not the purpose of the new system.

“The new system does not introduce a new tax or increase the existing VAT rate,” the Authority explained, adding that its primary objective is to strengthen compliance and ensure that taxes already required by law are properly collected and accounted for.

Existing 20% Effective Tax Rate Remains Unchanged

The GRA emphasised that no additional 20 per cent tax is being introduced under the new collection arrangement.

It explained that the existing effective tax rate remains at 20 per cent, comprising 15 per cent Value Added Tax (VAT), 2.5 per cent National Health Insurance Levy (NHIL) and 2.5 per cent Ghana Education Trust Fund (GETFund) Levy.

The Authority noted that VAT on electronically supplied services provided by non-resident companies is already an existing statutory obligation under Ghana’s VAT legislation.

Consequently, the new collection system represents an improvement in the mechanism used to collect taxes that are already due to the State, rather than the introduction of an additional tax burden on consumers.

The GRA said the public should distinguish between the introduction of a new tax and improvements in the collection of an existing tax.

The Authority has assured consumers that those already paying the applicable taxes should not be charged again on the same transaction.

According to the GRA, approximately 92 non-resident digital service providers are currently registered and remitting VAT to the Authority.

Where the applicable taxes are already included in subscription prices, the introduction of the new collection system should not result in an additional charge on the same transaction.

The clarification is expected to address concerns among consumers who use international digital platforms for entertainment, communication, business and other online services.

The GRA maintained that the new arrangement is designed to improve the collection of existing taxes without creating duplicate charges for transactions on which the applicable taxes have already been paid.

The GRA has also disclosed that it has identified approximately 100 additional non-resident digital service providers that are not currently charging and remitting the applicable taxes.

The Authority said these providers will progressively be brought into the tax system to ensure compliance with Ghana’s tax laws.

As a result, consumers using services from providers that have previously failed to charge the applicable statutory taxes may begin to see those taxes reflected in their payments.

The GRA explained that such changes would not represent the introduction of a new tax. Rather, they would reflect the enforcement and collection of taxes that are already required by law.

The Authority said the initiative would promote fairness between resident and non-resident service providers by ensuring that businesses operating in the digital economy meet their existing tax obligations.

The Authority explained that, under the existing arrangement, it relies largely on foreign digital service providers to declare their transactions and remit the applicable taxes.

However, the new system will enable the tax component of qualifying transactions to be identified and collected at the point of payment through participating financial institutions and payment service providers.

The GRA believes the mechanism will improve tax compliance, strengthen accountability and ensure that revenue due to the State is properly collected.

By using participating financial institutions and payment service providers, the Authority expects to improve the identification of taxable digital transactions and reduce the possibility of taxes going uncollected.

The system is therefore intended to strengthen the administration of Ghana’s tax laws in response to the growing use of international digital services by consumers and businesses in the country.

The GRA clarified that the new system applies to qualifying electronically supplied services rather than imported physical goods.

The services covered include streaming subscriptions, cloud computing, online gaming and digital advertising.

Payments for these services may be made through Ghana-issued payment instruments, including bank cards, mobile money and other digital payment platforms.

The Authority explained that physical goods purchased from international e-commerce platforms will continue to be subject to the applicable Customs procedures.

This means the new digital VAT collection mechanism should not be confused with the taxes and procedures that apply to the importation of physical products into Ghana.

The Authority acknowledged the importance of ensuring that consumers are adequately informed about applicable taxes and are protected against duplicate taxation.

It said it would continue engaging banks, payment service providers and digital service providers to establish appropriate safeguards against duplicate tax collection.

The engagement will also seek to ensure that consumers receive clear information about applicable charges and understand the taxes reflected in their digital service payments.

The GRA maintained that transparency in tax collection is important to building public confidence and ensuring that consumers are treated fairly under the existing tax framework.

The GRA has encouraged members of the public who notice charges that appear inconsistent with its clarification to contact the Authority through its official channels for further clarification and redress.

Consumers are advised to seek clarification where they believe they have been charged the applicable taxes more than once on the same transaction.

The Authority reiterated that the objective of the new collection system is to strengthen compliance, promote fairness between resident and non-resident service providers, and ensure that taxes already required by law are accurately collected and accounted for.

It further assured the public of its commitment to the fair, transparent and efficient administration of Ghana’s tax laws.

The GRA said it would continue leveraging technology to improve domestic revenue mobilisation while protecting the interests of taxpayers.

The press release was issued by the Communication and Public Affairs Department of the Ghana Revenue Authority.

 

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GTA Regional Directors Raise Concerns Over CEO Maame Efua Houadjeto’s Leadership

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Fourteen Regional Directors of the Ghana Tourism Authority (GTA) have raised concerns about the leadership approach of the Authority’s Chief Executive Officer, Maame Efua Houadjeto, during a meeting with the Board of Directors to address what they describe as persistent organisational challenges.

The meeting, held on Monday, October 12, 2026, at 3:00 p.m., was convened to discuss issues the Regional Directors say have remained unresolved since July 2026.

According to the Directors, the engagement was not intended to serve as an arbitration process but rather to obtain responses to questions and concerns they had previously raised.

During the meeting, the Directors expressed their displeasure with the CEO’s leadership approach, highlighting concerns about stakeholder engagement, regional coordination and other issues they believe are affecting the effective operation of the Authority.

They indicated that the concerns extend beyond individual disagreements and touch on broader institutional matters that require attention to ensure the smooth functioning of the GTA.

The Directors maintained that their position was motivated by the need to safeguard the integrity of the institution and restore effective operations across its regional structures.

They also called on the Board of Directors to facilitate a formal response from the Office of the CEO to the issues raised, stressing the need for the concerns to be addressed through the appropriate institutional channels.

The engagement provided an opportunity for the Regional Directors to formally communicate their grievances to the Board and seek its intervention in resolving the outstanding matters.

The meeting ended with a call for further intervention by the Board of Directors to ensure that the issues raised receive the necessary attention and responses.

It remains unclear what specific questions have been pending since July, what responses the Regional Directors expect from the CEO, or what steps the Board intends to take following the meeting.

The outcome of any subsequent engagement between the Board, the CEO and the Regional Directors is expected to be important in determining how the concerns will be addressed and how coordination within the Authority will be strengthened.

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Gamal Gorkeh Nkrumah, Son of Ghana’s First President, Dies in Cairo

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Gamal Gorkeh Nkrumah, son of Ghana’s founding President, Osagyefo Dr Kwame Nkrumah, has died in Cairo, Egypt, following a prolonged illness.

The Nkrumah family announced his death in a statement posted on the Facebook page of Samia Nkrumah, daughter of Ghana’s first president.

According to the statement, Gamal passed away peacefully in Cairo, where he had been receiving care at a rehabilitation centre after suffering a stroke.

The family described him as a beloved son, respected journalist, writer and intellectual who dedicated much of his life to examining the political, social and cultural developments shaping Africa and the wider world.

It said Gamal remained deeply committed to the ideals of justice, human dignity, African unity and international solidarity throughout his life.

As a journalist and commentator, he used his voice and intellect to analyse issues affecting Africa and the international community, earning recognition among friends, colleagues and readers who valued his insights and perspectives.

The family further described him as a man of profound intellectual curiosity, independent thought and quiet conviction, noting that he carried forward his father’s legacy in his own distinctive way while building a reputation based on his personal principles and achievements.

His death, the family said, represents a significant loss not only to his relatives and loved ones but also to the wider community of people who appreciated his work, humanity and engagement with important issues of his time.

The statement added that the family remembers Gamal with immense love, gratitude and pride, describing his wisdom, kindness and commitment to his values as an enduring source of inspiration.

The Nkrumah family also expressed appreciation to those who supported Gamal throughout his illness, particularly the medical professionals and caregivers in Cairo who provided him with treatment and care.

It extended its gratitude to the governments and people of both Egypt and Ghana for their support during the difficult period.

The family has appealed to the public to respect its privacy as it mourns the loss.

Details of memorial arrangements and opportunities for the public to pay tribute to Gamal Gorkeh Nkrumah’s life and legacy, according to the statement, will be communicated in due course.

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FOUR PROFESSORS SUE TO HALT GIMPA RECTOR SEARCH PROCESS AMID CONTROVERSY

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Four professors at the Ghana Institute of Management and Public Administration (GIMPA) have filed a lawsuit seeking to halt aspects of the process to select a search committee for the appointment of a new Rector, escalating tensions over the institution’s leadership transition.

The plaintiffs are Professors Lord Mawuko Yevugah, Wisdom Akpalu, Kwami Adanu and Patrick Tandoh-Offin. They filed the action on October 5, 2026, challenging aspects of the process involving the Chairman of GIMPA’s Governing Council, the Institute’s Secretary and the Rector.

At the centre of the dispute is the Convocation register used to determine who could vote for representatives on the Rector Search Committee. The professors contend that about 30 newly appointed or promoted lecturers were included on the register despite questions over whether their appointments had received the necessary approval from the Governing Council.

They argue that allowing the lecturers to participate in the election could undermine the legitimacy of the process and have asked the court to ensure that the selection of the search committee complies with GIMPA’s 2020 Statutes. They also want the committee’s composition and the respective roles of the Governing Council and Convocation clarified.

GIMPA management, however, has indicated that a special ad hoc committee audited the Convocation register and confirmed that those listed had valid appointments, based on Human Resource Management records. Exceptions reportedly applied to staff on leave of absence or secondment.

The Convocation election proceeded on October 6. According to reports, Professor Patrick Tandoh-Offin contested to represent the professorial class but lost to Professor Emmanuel Gyamfi Numapau, who received 118 votes against Tandoh-Offin’s 35.

The legal challenge comes as GIMPA prepares for the end of Rector Professor Samuel Kwaku Bonsu’s tenure in August 2027. The Institute’s statutes require the search process to begin ahead of the incumbent’s departure.

The case raises questions about voting eligibility, institutional governance and the procedures for selecting the next Rector. The court’s determination could affect the process, although the available reports do not establish that an injunction has been granted or that the election

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EPA ORDERS IMMEDIATE HALT TO UNAPPROVED RECLAMATION WORKS NATIONWIDE — GOVERNMENT AGENCIES, CONTRACTORS ON NOTICE

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The Environmental Protection Authority (EPA) has ordered an immediate halt to all land reclamation, mine-site rehabilitation, dredging and water-body restoration activities being undertaken without the requisite environmental permits across Ghana.

In a public notice issued on Wednesday, October 14, 2026, the Authority warned that institutions, companies, contractors and individuals operating without its approval must cease work immediately and report to the nearest EPA regional office or its head office for regulatory assessment.

The directive applies to both public and private projects, including government-sponsored, privately funded and donor-supported initiatives. The EPA specifically mentioned the Ministry of Lands and Natural Resources, Forestry Commission, Ghana Gold Board (GoldBod), Minerals Commission and Mineral Development Fund among the institutions required to ensure compliance.

Under Regulation 40 of the Environmental Protection (Environmental Assessment) Regulations, 2025 (L.I. 2504), reclamation and restoration activities fall within Ghana’s environmental assessment and permitting framework.

The covered activities include rehabilitating abandoned mining sites, backfilling excavated areas, restoring degraded land, revegetation, dredging and desilting rivers, modifying river channels and restoring polluted water bodies, wetlands and aquatic ecosystems.

The Authority stressed that securing a contract, obtaining funding approval, holding a mining lease or receiving authorisation from another public institution does not replace an EPA Environmental Permit. Similarly, consent from traditional authorities, memoranda of understanding and participation in government programmes cannot substitute for the required approval.

Contracting institutions have also been directed to verify the environmental permit status of projects before allowing contractors to mobilise to their sites.

The EPA acknowledged the importance of restoring lands and water bodies damaged by illegal and irresponsible mining but cautioned that rehabilitation efforts must not create further environmental destruction by bypassing regulatory safeguards.

It warned that individuals and institutions that continue unapproved operations after the notice would face action in accordance with applicable Ghanaian laws.

The directive reinforces the Authority’s position that environmental restoration, regardless of its funding source or purpose, must comply with the country’s permitting requirements.

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North Korea and China Open Long-Delayed Bridge

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The opening of the long-awaited New Yalu River Bridge marks a significant step towards strengthening cross-border transport and trade between China and North Korea.

China and North Korea have officially opened a major bridge linking the two countries, ending a 12-year delay that kept the infrastructure project unused despite its completion in 2014.

The New Yalu River Bridge connects the Chinese border city of Dandong, in Liaoning province, with Sinuiju in North Korea. The four-lane crossing stretches approximately three kilometres across the Yalu River and is expected to improve the movement of goods between the neighbouring countries.

The project was originally intended to begin operating in 2014. However, the opening was postponed for years as infrastructure on the North Korean side, including connecting roads and customs facilities, remained incomplete. Analysts have also pointed to strained bilateral relations and disagreements surrounding economic cooperation as possible contributing factors.

Trade and economic implications

The new crossing is expected to ease pressure on the older China–North Korea Friendship Bridge, which has served as a major route for official trade between the two countries.

By providing additional road capacity, the new bridge could improve freight transportation, reduce congestion and support the movement of essential goods. Its strategic location is particularly important because China remains North Korea’s principal trading partner.

Nevertheless, the opening does not automatically guarantee a rapid increase in trade. International sanctions imposed in response to North Korea’s nuclear and weapons programmes continue to constrain economic activity, while the scale of future commercial traffic will depend on border arrangements and the two governments’ economic policies.

A signal of closer bilateral engagement

The bridge’s inauguration comes amid renewed diplomatic engagement between Beijing and Pyongyang. It also highlights China’s continued economic importance to North Korea as the latter seeks to maintain relationships with key regional partners.

For China, improved transport links could facilitate cross-border commerce and support economic activity in Dandong. For North Korea, the bridge offers additional capacity for importing goods and developing commercial infrastructure around Sinuiju.

However, the project’s long delay illustrates how political disagreements and economic considerations can obstruct infrastructure intended to improve regional connectivity.

What happens next?

Attention will now turn to how quickly the bridge becomes an established route for commercial traffic and whether the additional capacity translates into measurable growth in bilateral trade.

While the opening represents an important infrastructure milestone, its longer-term economic and diplomatic impact will depend on the willingness of both governments to sustain cooperation and the restrictions governing North Korea’s international trade.

The opening ends a lengthy wait for the two countries, but the bridge’s ultimate significance will be measured by the trade and cooperation it enables in the years ahead.

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