The Food and Beverage Association of Ghana (FABAG) has petitioned the Government of Ghana and the Ministry of Finance to exempt all goods bonded in warehouses before February 1, 2016 from attracting the new ECOWAS Common External Tariff.
The government began the full implementation of the new tariff on February 1, 2016. Effectively, importers of goods in bonded warehouses before the implementation date would have to clear these goods under the new tariff regime.
This, according to the importers, is inimical to their businesses, especially as duties paid in Ghana on imported goods are already on a higher side compared to those of neighbouring countries.
They mentioned that unlike their counterparts in neighbouring countries such as Togo, Benin and Cote d’Ivoire whose governments have maintained lower duty rates for most goods, the duties for similar goods have rather shot up astronomically in the case of Ghana in spite of the prevailing economic conditions.
“For instance, the import duties for most frozen products have increased from 25% to 35%, making a cumulative 55% tax on the product aside other cost elements,” the association noted.
Again, while ECOWAS import duty on rice is now 10% in Cote d’Ivoire, it is 20% in Ghana.
The association further made reference to prevailing cost elements on imports such as hikes in interest rates, insurance, utilities and many other charges which they say make doing business unbearable.
For example, the association made reference to the current interest rate in Cote d’Ivoire, which stood at 8%, while Ghana’s stood at 30%.
“Agencies like the Food and Drugs Authority are also charging about $20,000 to inspect some of these products in addition to an average registration fee of GH₵1,800.
“The Environmental Protection Agency is also charging about GH¢20,000 per warehouse for warehousing these goods,” the association added.
The association maintained that the new tax regime, if not suspended, would spell doom for most businesses in the country.
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