Prime News Ghana

Reduction of import duty will not affect local businesses negatively-Gov’t

By Justice Kofi Bimpeh
import_duty_ghana
Reduction of import duty in Ghana

Government says the reduction of import duty by 50 per cent and 30 per cent for cars will not affect local businesses negatively.

The spokesperson for the Vice President Dr Gideon Boako said it has become necessary for government to reduce the import duty because most goods in the country do not pass through the appropriate channel making it difficult to get the needed revenue as a country.

Speaking to Citi FM after the Vice President Bawumia’s address on the economy at a town hall meeting in Accra, Dr Gideon Boako said: “Actually the point is that Ghana here we are not in shortage of anything the goods are already coming in to the market but they are not passing through the right channel because when you look at the data it suggests that in Lome from 2013 to 2018 the volume of container that passes through the Lome port increase by 300% but Tema port by 4%, it means that when you look at the volume of goods that are on the market today they are not coming through Tema, they are coming through unapproved means so by reducing it they will pass through the Tema port, this is not in any way an attempt to say that we are going to be dumping goods on the country and kill local businesses the good are already coming to the country anyway but through unapproved ways so when we reduce it they pass through the approve channels and we get the revenue.”

“You saw the rousing welcome to the port announcement it actually represent the sentiment of Ghanaians, so their benchmark value for every good that comes to the port and what we are saying is that the benchmark for instance a particular container of goods we reduce it by 50%,” he added.

READ ALSO:

Bawumia gives reasons for Cedi depreciation

Gov't reduces import duty by 30% for cars

BoG needs GHc700m to clean up microfinance industry

Reduction of import duty by 50%, 30% for cars

Dr. Mahamudu Bawumia yesterday April 3 disclosed that Cabinet has approved for a reduction of import duty by 50% and 30% for cars and it will take effect today April 4.

Addressing Ghanaians at a town hall meeting, Dr Bawumia said import duty will be reduced by 50 per cent but 30% for cars.

“To reduce the incidence of smuggling and enhance revenue, the benchmark or delivery values of imports have been reduced by 50 per cent except for vehicles which will be reduced by 30% effective 4th April 2019.

“This means, for example, if a container was previously assessed for duty at a value of $20,000, it will now be assessed from tomorrow at a value of $10,000. We expect that the higher volumes of at least 50% annually and increase custom revenue,”

President Akufo-Addo says Gov't will reduce import duty

President Akufo-Addo at a town hall meeting of Ghanaians resident in Worcester, Massachusetts, in the United States of America has indicated that there will soon be reforms to reduce the high import duty at Ghana’s ports.

After calls from groups like Ghana Union of Traders Associations (GUTA) to review the high taxes and import duty on imported items, President Akufo-Addo assured that the Government is already dealing with the matter.

“We have realised from the studies we have done that our ports are not competitive, and the import regime in our country is far too high. We are dealing with it, and, very soon, the measures that the government will roll out will become known to all of you.”

“I am not talking next year, or in six months’ time, I am talking very, very soon” .

www.primenewsghana.com/Ghana News