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Ghana legislation library
Special Petroleum Tax Act, 2014 (Act 879)
The Special Petroleum Tax charge, its change from ad valorem taxation to specific product rates, administration and definitions.
MSL Business School · Legal Research Resource
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Read Act 879 provision by provision
This consolidation shows the original 17.5 percent rate, the 15 percent rate enacted by Act 942 and the specific-rate structure enacted by Act 965.
Long title: An Act to impose a Special Petroleum Tax on selected petroleum products and to provide for related matters.
Charge, rate and administration
Sections 1–3MSL Business School · Legal Research Resource
Section 1Imposition of taxCurrent
A licensed oil marketing company shall charge a Special Petroleum Tax on the supply of each petroleum product specified in the Schedule.
TaxLawGH Legislation Library · MSL Business School · Legal Research Resource
Section 2Rate of taxAs amendedCurrent
The rate of the tax is the specific rate per litre or kilogramme specified in the Second Column of the Schedule corresponding to the petroleum product specified in the First Column of that Schedule.
Amendment history · 3 records
Special Petroleum Tax Act, 2014 (Act 879)Original rate
Section 2 as enacted
The rate of the tax is seventeen and one-half percent, to be calculated on the ex-depot price of the petroleum product.
Special Petroleum Tax (Amendment) Act, 2017 (Act 942)Substitution
Section 1
The rate of the tax is seventeen and one-half percent, to be calculated on the ex-depot price of the petroleum product.
The rate of the tax is fifteen percent, to be calculated on the ex-depot price of the petroleum product.
The rate of the tax is fifteen percent, to be calculated on the ex-depot price of the petroleum product.
Special Petroleum Tax (Amendment) Act, 2018 (Act 965)Substitution
Section 1
The rate of the tax is fifteen percent, to be calculated on the ex-depot price of the petroleum product.
The rate of the tax is the specific rate per litre or kilogramme specified in the Second Column of the Schedule corresponding to the petroleum product specified in the First Column of that Schedule.
The ad valorem rate was replaced by the product-specific rates in the substituted Schedule.
TaxLawGH Legislation Library · MSL Business School · Legal Research Resource
Section 3Administration and payment of taxCurrent
(1) The Ghana Revenue Authority shall administer and collect the tax in accordance with the Revenue Administration Act, 2016 (Act 915).
(2) The tax shall be paid to the Commissioner-General at the same time and in the same manner as the value added tax payable under the Value Added Tax Act, 2013 (Act 870).
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Regulations and interpretation
Sections 4–5MSL Business School · Legal Research Resource
Section 4RegulationsCurrent
The Minister may, by legislative instrument, make Regulations for the effective implementation of this Act.
TaxLawGH Legislation Library · MSL Business School · Legal Research Resource
Section 5InterpretationCurrent
In this Act, unless the context otherwise requires,
“Commissioner-General” means the Commissioner-General appointed under section 13 of the Ghana Revenue Authority Act, 2009 (Act 791);
“licensed oil marketing company” means a company licensed by the National Petroleum Authority to market petroleum products;
“petroleum product” means a product specified in the Schedule; and
“tax” means the Special Petroleum Tax imposed under section 1.
TaxLawGH Legislation Library · MSL Business School · Legal Research Resource
Schedule
Sections Schedule–ScheduleMSL Business School · Legal Research Resource
ScheduleSpecific rate per litre or kilogramme of petroleum productsAs amendedCurrent
The Schedule states the specific rates for the listed petroleum products.
| Petroleum product | Specific rate |
|---|---|
| Petrol | 46 GHp per litre |
| Diesel | 46 GHp per litre |
| Liquefied petroleum gas | 48 GHp per kilogramme |
| Natural petroleum gas | 35 GHp per kilogramme |
| Kerosene | 39 GHp per litre |
Amendment history · 1 record
Special Petroleum Tax (Amendment) Act, 2018 (Act 965)Substitution
Section 2
The original Schedule listed petroleum products for an ad valorem rate.
The Schedule was replaced with the current product-specific rates per litre or kilogramme.
Petrol 46 GHp/litre; diesel 46 GHp/litre; liquefied petroleum gas 48 GHp/kg; natural petroleum gas 35 GHp/kg; kerosene 39 GHp/litre.
TaxLawGH Legislation Library · MSL Business School · Legal Research Resource
Questions about the legislation
Act 879: legal status and application
Is Special Petroleum Tax still charged as a percentage of the ex-depot price?
No. Act 965 replaced the 15 percent ad valorem rate with specific rates per litre or kilogramme for the products in the Schedule.
What are the current statutory rates in Act 879?
The Schedule states 46 GHp per litre for petrol, 46 GHp per litre for diesel, 48 GHp per kilogramme for liquefied petroleum gas, 35 GHp per kilogramme for natural petroleum gas and 39 GHp per litre for kerosene.
Which Acts changed the rate?
Act 942 reduced the original 17.5 percent rate to 15 percent. Act 965 then replaced the percentage rate and the Schedule with product-specific rates.
Why does section 3 mention Act 870?
That is the literal wording of Act 879. Act 870 has since been repealed and replaced by Act 1151, so present administration must be read with the current VAT and revenue-administration legislation.