On July 16, 2019, the Ghana Union of Traders’ Association (GUTA) urged importers to make it their business to reduce customs fees at ports.
This follows the government’s efforts in April to reduce the benchmark value for imports by 50 percent, while the benchmark value for vehicles was also reduced by 30 percent.
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There has been a significant increase in imports into Ghana three months after the government reduced import tariffs, the Ghana Traders Union (GUTA) said.
In April, the government reduced the benchmark value for imports by 50 percent, while the benchmark value for vehicles was also reduced by 30 percent.
Some importers, including parts dealers, welcomed the announcement. However, the Ghanaian Industries Association (AGI) has screamed scandal and predicted that it would lead to the collapse of local businesses.
Announcing the cut at a public meeting organized by the economic management team, Vice President Dr Mahamudu Bawumia said the move was aimed at ensuring that larger volumes of products imported into the sub-region were routed through Ghana rather than its neighbors.
According to him, available data showed that traffic in the port of LomÃ© increased by around 300% between 2013 and 2018, while Ghana saw an increase of just over 4% during the same period. .
In a statement dated July 16, GUTA said the reduction encouraged companies to import, in particular, items that had so far been difficult to import into the country due to high import duties, making it difficult to import into the country. their non-competitive prices.
âThe gain from the reduction so far has allowed most businesses to pass some benefits of the price reduction – ranging from 10% to 15% to the consumer.
“This reduction could have been even larger, but for other factors such as balancing the price of new products against old stock,” the statement said, adding: “Most of the gains also came through in the price stability in the market, even in the midst of currency depreciation.
Below is the full declaration
Press release on the effect of the reduction in the benchmark value so far
It should be recalled that following the business community’s persistent call for a reduction in high import tariffs, the government announced in April 2019 a 50% reduction in the reference value of imported goods and a 30% reduction in the calculated value of vehicles.
Three months later we have successfully worked with Ghana Revenue Authority – Customs Division on most modalities involving different product lines and we are still working on the few others.
After that, companies are encouraged to import, in particular, items which were heretofore difficult to bring into the country due to the high import duties, making their prices uncompetitive.
The gain from the reduction so far has allowed most businesses to pass some benefits of the price reduction – ranging from 10% to 15% to the consumer.
This reduction could have been even greater, but for other factors like balancing the price of new products against old stock.
Most of the gains were also manifested in price stability in the market, even amid the depreciation of the currency.
It is a fact that certain categories of goods have not experienced any reduction at all, due to the fact that the modalities involved in their values ââhave not yet been completed.
We also expect prices to continue to fall, especially if the exchange rate remains stable. Knowing that competition is the best determinant of prices in the market.
With this statement, we urge all importers to share the benefits of reduction with the consuming public.