Tema-Ghana, Nov. 13, MNN – Dr Joseph Obeng, President of the Ghana Union of Traders Association (GUTA) has proposed a pause in importation to make the government and policymakers fully appreciate the importance of imports to the Ghanaian economy.
Dr. Obeng “I think it’s about time we pause in importation for about six months for the nation to realize its important impact on revenue mobilization and the availability of essential commodities just as it happened in 1983”.
He said this during the second Annual General Meeting (AGM) of the Association of Customs House Agents Ghana (ACHAG), on the theme: “Achieving state revenue targets in the midst of economic challenges-the role of stakeholders.”
He said doing business in Ghana is too high as they have to fulfil a number of taxations, and import levies, coupled with high exchange rates among others.
He wondered why the cost of doing business was low in neighbouring countries such as Togo, Benin, and Nigeria; while it is so high in Ghana adding that “the taxes we pay in Ghana is so high, especially now that the exchange rate is up in the skies, this is the time the government has increased benchmark value.”
Dr. Obeng said it was not the best that the authorities were only targeting and imposing more taxes on those who complied adding that taxes should be made affordable and easy to comply with to ensure that more people are roped in.
He also raised issues with the current structure of the Value Added Tax (VAT), which he said has made it very difficult to comply with and unfriendly as there are three different categories of payment schedules under it.
He said while hitherto the VAT was a flat rate of three percent, the current arrangement of some paying 19.5 percent, and a four percent flat rate, while others in the same market were exempted from paying was not the best.
Commenting on the theme, he said revenue was needed by the government to build the nation, therefore, urged the business and freight forwarders community to rally behind the state through the payment of their taxes.
“A good businessman makes a profit and pays taxes, without paying the tax you can’t even have the voice to talk or protest against things,” he added.
Mr. Yaw Kyei, the president of ACHAG, in an address said doing business at the Ports was becoming very expensive mentioning that charges have either doubled or tripled between January 2022 and now.
Mr Kyei said the major problem has been the arbitrary increments in invoices from the Shipping lines, adding that though they offer the same services, there were major differences in invoices issued for the same services as there was no uniformity in the application of their invoice structures.
He also lamented that the industry was boiling with issues that very much threaten the existence of businesses nationwide and globally, noting that their clients were having a hard time importing goods because of the fast depreciation of the cedi, effects of the global supply chain, especially on freight charges, effects of Covid-19 and the Russian-Ukraine war.
He appealed to the policymakers, and the government, to form a very close alliance with the various stakeholders, especially, GRA by giving consideration to proposals from the seasoned customs officers.
“I am highly confident that issues like the introduction of the unpopular Cargo Tracking Note (CTN), the uncertainties surrounding discounts on goods, variations in the benchmark policies, and auctioning of goods, and vehicles.
“The hullabaloo surrounding the exit of GcNET and the coming in of ICUMS could have been better managed, all these create unnecessary tension, lack of confidence in Government policies, and uncertainties amongst the business community,” he said.
