Tema-Ghana, April 20, CDA Consult – Mr. Samson Awingobit Asaki, Executive Secretary of the Importers and Exporters Association of Ghana (IEAG), has predicted that if container traffic at Ghana’s ports and local manufacturing do not increase, commodities may be shortages by July 2023.
Mr. Asaki stressed that “by July 2023, if we don’t take care, there will be a shortage of goods in Ghana.”
He made the prediction while speaking on the “Perspective of Importers and Exporters on the Three Newly Approved Taxes” on the Ghana News Agency-Tema Industrial News Hub Boardroom Discussions Platform.
He explained that, as a result of high clearance fees for imported products, many individual importers and organisations have either stopped importing or reduced the volume they import, resulting in a considerable decline in cargo activity at Ghana’s seaports.
He anticipated that the country would confront certain shortages of vital commodities due to the inability of local manufacturing companies and industries to produce more to offset the gap created by the reduction in importation.
Mr. Asaki continued, “When such scarcity develops, prices will rise, resulting in a high cost of living for ordinary people.”
He noted that Ghana’s imports were more commercial in nature, and that as a result of containerization, some individuals became involved in the importing of essential commodities alongside huge import corporations.
According to him, many duties, fees, and penalties, particularly the implementation of the reversal of the subsidy on benchmark values, have pushed them to stop importing, while corporations have also considerably reduced the number of containers they import.
As a result, he recommended the President to put three revenue bills on hold: the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, and the Income Tax Amendment Bill 2022.
According to the IEAG’s Executive Secretary, implementing the tariffs will result in additional declines in imports as well as a detrimental impact on domestic economy, producing enormous agony for individuals.
He requested a broad debate on the next steps, claiming that this was the first time that all business organisations had united in opposition to the imposition of a tax.
For example, he noted that most of the time such organisations would clash, and that when the government attempted to reverse the benchmark value subsidy, although his organisation and others were opposed, the Association of Ghana Industries was in favour.
He emphasised that “for the first time, we are all calling on the President to postpone its implementation.” Now that the government has ignored our request to delay its implementation, it is a commendable choice.”
