A)

i) The total specific duty is the sum of the duty on the total liquid volume and the

duty on the total pure alcohol content.

Volume from Bottles: Total bottles = 1,000 cases × 12 bottles/case = 12,000 bottles Volume in ml = 12,000 bottles × 750 ml/bottle = 9,000,000 ml Volume in liters = 9,000,000 ml / 1,000 ml/L = 9,000 liters

Volume from Kegs Volume in liters = 50 kegs × 20 L/keg = 1,000 liters

Total Liquid Volume: 9,000 liters + 1,000 liters = 10,000 liters

Duty on Volume = Total Liquid Volume × Rate per liter Duty on Volume = 10,000 liters × GH¢ 10.00/liter = GH¢ 100,000

Total Pure Alcohol = Total Liquid Volume × Alcohol by Volume (%) Total Pure Alcohol = 10,000 liters × 43% = 4,300 liters

Duty on Alcohol Content = Total Pure Alcohol × Rate per liter of alcohol Duty on Alcohol Content = 4,300 liters × GH¢ 15.00/liter = GH¢ 64,500

Total Duty = Duty on Volume + Duty on Alcohol Content Total Duty = GH¢ 100,000 + GH¢ 64,500 = GH¢164,500 (5 marks)

ii) Conditions for granting duty drawbacks

A duty drawback is a refund of import duty paid on goods or materials that are later exported or used in the production of exported goods.

Proof of Exportation:

The goods on which duty was paid must be exported or used in the manufacture of exported goods, and satisfactory evidence of export must be produced to Customs. Time Limit for Claim:

The exporter must submit the drawback claim within 12 months (or as prescribed) from the date of exportation. Proper Documentation:

All relevant customs documents — such as import entries, duty payment receipts, export declarations, and invoices — must be provided to support the claim.  Goods Not Altered or Consumed Locally:

The goods must not have been consumed, altered, or sold in the domestic market prior to export. Minimum Amount: amount of duty refundable must meet the minimum threshold set by Customs

regulations (if applicable).

B) The VAT treatment for pre-registration purchases is governed by Section 48(12) of

the VAT Act. This section sets out three key conditions: the type of good, the timing of the acquisition, and whether the good was “on hand” at the date of registration.

Printer Ink (Purchased January 2025): The VAT paid on this item cannot be claimed as a deduction. These are general goods. The law allows a claim only for goods acquired within four months of the registration date. The purchase in January falls outside this four-month window for the August 1 registration.

Office Server (Purchased March 2025): The VAT paid on this item can be claimed as a deduction This is a capital good, for which the law provides a longer time limit of six months. The purchase in March is within this six-month window, and the server was on hand at the date of registration.

Laptop Chargers (Purchased June 2025): The VAT paid on this item can be claimed as a deduction. These are general goods acquired in June, which is within the four-month period prior to the August 1 registration. They were also on hand, meeting all the conditions.

Keyboards (Purchased July 2025): The VAT paid on this item cannot be claimed as a deduction. Although the purchase was made within the four-month time limit, the law requires that the goods must be “on hand” on the effective date of registration. Since these keyboards were sold before August 1, this crucial condition is not met.

C)

Amanka (the principal): The supply of the painting to the customer for GH¢10,000 is treated as a supply made directly by him. According to Section 32(1) of the Act, Amanka is therefore responsible for accounting for the VAT on the full GH¢ 10,000 selling prices.

Kumasi Art Gallery (the Agent): The service of acting as an agent is a separate, taxable supply made by the gallery to Amanka. As per Section 32(2), the gallery is responsible for accounting for VAT on the value of its commission.

D)

Positive Social Significance of borrowing:  Financing Essential Social Infrastructure: Borrowed funds are a primary source for large-scale, long-term investments in social infrastructure. Building new hospitals, clinics, and health posts, as well as procuring modern medical equipment, can expand access to quality healthcare, especially in underserved rural areas. This directly improves public health outcomes, reduces infant and maternal mortality rates, and enhances the overall well-being of the population.

Stimulating Economic Growth and Job Creation: Government borrowing can be a tool to stimulate the economy, leading to job creation and improved livelihoods. Projects like roads, railways, and ports are often funded through borrowing. These projects not only create direct employment for thousands of people but also improve connectivity, making it easier for farmers to transport produce to markets and for businesses to operate more efficiently. Borrowing can also create the fiscal space to fund social safety nets and programmed aimed at poverty reduction, such as conditional cash transfers or microfinance initiatives.

 Stabilizing the Economy During Crises: In times of national or global crisis, such as the COVID-19 pandemic, borrowing allows the government to respond effectively. This borrowing can be used to provide financial relief to citizens who have lost their jobs or income and offer credit lines to businesses to prevent mass closures. This acts as a buffer against severe economic shocks, protecting the social fabric of the country.

Negative Social Significance: The Threat of a Debt Crisis Redirecting Funds from Social Services to Debt Servicing: A high and unsustainable debt burden means that a large portion of the government’s revenue must be dedicated to paying interest and principal on loans. In recent years, Ghana has spent a significant percentage of its tax revenue on debt servicing, leaving fewer resources for essential social services. This can lead to cuts in Healthcare and Education

 Inflation and the Erosion of Living Standards: A high public debt can lead to a depreciation of the local currency (the cedi) and fuel inflation. As the cedi depreciates, the cost of imported goods, including essential items like food and fuel, rises sharply. This disproportionately affects low-income households, increasing poverty and making it difficult for people to meet their basic needs.

 Social Distress and Loss of Public Trust: A debt crisis can have profound social and psychological impacts. Programmes like Ghana’s Domestic Debt Exchange Programme (DDEP) have affected the savings and investments of many citizens, including retirees and pension funds. This can lead to a loss of trust in the government and the financial system, creating widespread social anxiety and economic uncertainty. The crowding out of the private sector and a general economic slowdown resulting from a debt crisis can lead to business closures and