Review high import taxes to save local businesses – FABAG urges govt

The Food and Beverages Association of Ghana (FABAG) has called on the government to urgently review what it describes as an excessive import tax regime, which continues to place a heavy burden on businesses despite the recent appreciation of the cedi.

According to FABAG, the strengthening of the local currency has not translated into reduced import duties at Ghana’s ports. As a result, many importers are now diverting their goods through alternative ports in neighbouring countries to cut costs.

Commenting on the government’s newly launched 24-hour economy initiative and measures needed to support local industries, FABAG’s Executive Chairman, John Awuni, urged authorities to act swiftly by revising the current tax structure.

“A tax of about 53% for most of the country’s goods is very unfriendly, and that also promotes tax evasion and under-invoicing for most of the goods.

Because if you are going to pay this particular level of tax on your goods and then go and add warehouse and major operational costs, you will eventually be priced out of the Ghana market.

“So, for you to be able to have a quick turnover of your goods, your prices have to be very moderate. And to do that, you have to see how you can beat the tax system.

So I will appeal to the tax authorities and the government in particular to look at the issue of the tax regime at the ports,” he stated.

Source: CitiNewsRoom