GTA Urges Food Outlets to Stop Illegal Service Charges

1
GTA Urges Food Outlets to Stop Illegal Service Charges
GTA Urges Food Outlets to Stop Illegal Service Charges

Africa-Press – Ghana. The Ghana Tourism Authority (GTA) has appealed to restaurant, catering and food joint operators to stop imposing service charges on customers, saying such charges are not required by law.

Mr. Ekow Sampson, Deputy Chief Executive Officer in charge of Operations, cautioned operators against illegal practices that could harm Ghana’s image and urged transparency in all charges and taxes on customers’ bills.

He made the appeal at an engagement with operators in Accra on Thursday, aimed at promoting dialogue, understanding concerns and finding solutions on service charges within Ghana’s legal framework.

Mr. Sampson explained that where service charges were applied, they should not be presented as legally mandated taxes but as optional staff contributions or tips, clearly communicated and agreed to by customers.

“Let me state clearly that service charges are not prescribed by Ghanaian law. There is no statute that mandates restaurants or food outlets to apply a specific service charge on customers’ bills,” he said.

Mr. Sampson clarified that any service charge imposed was a discretionary business decision, not a statutory levy collected on behalf of the Government.

He said customers were legally liable only for prices displayed on menus and statutory taxes, cautioning that additional fees charged without consent or clear notice could constitute unfair trade practices.

Mr. Sampson reiterated that the GTA, established under the Tourism Act, 2011 (Act 817), regulated tourism enterprises, including restaurants, catering services, food joints and entertainment facilities, under the Tourism (Registration and Licensing of Food, Beverages and Entertainment) Regulations, 2019 (L.I. 2238).

On statutory taxes, he outlined those required by law: Value Added Tax (VAT) at 15 per cent, National Health Insurance Levy (NHIL) at 2.5 per cent, Ghana Education Trust Fund (GETFund) levy at 2.5 per cent, and the one per cent Tourism Levy.

“These are legal obligations that must be charged, accounted for and remitted by registered operators. They are backed by the laws of Ghana and administered by the Ghana Revenue Authority and the Ghana Tourism Authority,” he said.

Mr Sampson said although the levies affected price competitiveness, they were critical for nation‐building and the provision of public services, including health, education and tourism promotion initiatives such as “December in Ghana.”

He stressed that compliance with the law was essential to maintaining Ghana’s reputation as a transparent destination and warned that the Authority would not tolerate practices that compelled customers to pay non‐official fees.

“The GTA will not countenance any practices that harm our brand or undermine the trust tourists place in us,” he said.

Mr Ben Anane Nsiah, Deputy Chief Executive Officer in charge of General Services, highlighted the importance of the hospitality sector in Ghana’s tourism value chain, describing tourism as a key pillar of socio‐economic development.

He said Ghana recorded about 1.3 million international arrivals last year, but growth was slowing compared to previous years amid increasing competition from other West African destinations.

“We should be mindful not to add unnecessary obstacles that make Ghana unattractive to price‐sensitive visitors, citing high visa fees, airfares and hidden charges as factors that could discourage tourists,” he said.

Mr Nsiah said compulsory or poorly communicated service charges could negatively affect customer perception, particularly in the age of social media, where negative experiences could quickly damage the country’s image.

He encouraged operators to promote voluntary tipping through quality service rather than compulsory charges and called for collaboration to build a consistent hospitality experience nationwide.

“Our ambition as a country is to reach two million arrivals, and that will only happen if we work together and align our practices with the big picture,” he said.

LEAVE A REPLY

Please enter your comment!
Please enter your name here