The Environmental Protection Levy (EPL)
The Environmental Protection Levy (EPL) which took effect on June 1, 2015, required domestic manufacturers to remit returns not later than July 31, 2015. Arising out of a series of consultations with key stakeholders, GOJ has revised the filing of returns by manufacturersby the last working day October, 2015. Consistent with the new Act, domestic manufacturers are being advised to pay careful attention to the conditionalities of the Income Tax Act:
Pursuant to Part III of the First Schedule of the Income Tax Act:
- Persons who are engaged in the transformation of raw materials or intermediate goods into a new or distinct good are manufacturers and must charge the EPL (the EPL must be charged whether or not you are currently registered with Ministry of Industry, Investment and Commerce (MIIC). ·
- All manufacturers are permitted to account for the EPL imposed effective June 1, 2015 on their September quarterly return due on the last working day of October 2015. ·
- Manufacturers who incurred EPL at the ports on productive inputs, which have been used, or are to be used in the manufacturing process, will have the EPL paid, available as a credit when accounting for the tax on their return in October 2015.
- Manufacturers who purchased goods from local manufacturers for use in their production process and paid the EPL are eligible for a credit when accounting for the tax.