Mustapha Abdul Hamid, Minister of Information
Government has suspended with immediate effect the charging of import Value-Added Tax (VAT) on some 64 commodity groups which started on March 1, this year and led to unintended hikes in import charges.
It also suspended indefinitely the proposed ‘fumigation levy’ for shippers.
A statement issued recently by the Ministry of Information and signed by Mustapha Abdul Hamid, Minister and presidential spokesperson, said the decision was taken after extensive consultation between government and various stakeholders.
The 64 commodity groups include mobile phones, electrical transformers, tractors for agricultural purposes, solar cells, musical instruments, outboard motors, concrete, mortar mixers, day-old chicks, among others.
Some associations, including the Ghana Union Traders Association (GUTA), Freight Forwarders, Importers and Exporters Associations, Association of Ghana Institute (AGI) and the Ghana National Chamber of Commerce, among others, kicked against the Import VAT and the fumigation levy, citing high cost of operations.
Some institutions have welcomed the suspension.
In an interview with Joy Fm, President of the Ghana Institute of Freight Forwarders, Kwabena Ofosu Appiah said, “this was actually going to be a cost item that they’ve not planned for and the fact that it has been removed means that the status quo remains so at least for a foreseeable time they will know how to adjust even if this will have to happen in the future.”
“I am sure that it is going to be done in such a manner that people can expect when these things will be happening for which reason they will be able to make adjustments here and there.”
Mr Ofosu Appiah added that “so for us that was the factor, this one was too abrupt and the fact that it has been taken away sends us back into the original cue…we hope that in the future even if this thought is going to be raised again, it would have to be revisited with a lot of considerations.”
By Samuel Boadi