Govt plans to reduce ratio of import duty to 5%

The government has hinted of plans to reduce the ratio of import duty to about 5% soon.

This is to bridge the revenue gap and also improve efficiency at the ports.

Currently, fees charged on import duty stands at 40%.

In an interview with Citi Business News, Director of Revenue, Policy Division at the Finance Ministry, Anthony Dzadzra said the ultimate aim of the decision is to reduce the import duty for users at the ports.

“As much as possible, we must get to about 5% due to the revenue gap, Whiles we improve efficiency domestically, then we can be reducing the import otherwise we would not even have money to pay salaries. We need revenue to run the country efficiently, pay police and civil servants among others. But like I said the aim is to reduce the import duty whiles we implement efficiently the domestic tax.” he said.

He spoke to Citi Business News at the sidelines of the American Chamber of Commerce/USAID/ Ministry of Trade Luncheon of a new study on the impact of trade-related fees and charges held in Accra.

U.S Ambassador Robert P. Jackson speaking at the luncheon encouraged Ghana to take advantage of the Trade Facilitation Agreement to simplify procedures at the ports.

“Full implementation and participation will simplify customs and other border control procedures. It will reduce the cost and time of doing business across borders and make Ghanaian goods more competitive across global markets,” he said.

He stressed that, adoption of the study’s recommendations and implementations of the TFA will foster increased economic growth in Ghana.

“Ghana has tremendous potential to be ‘the trade gateway to Africa’. The United States will work with Ghana to create an enabling business environment that builds on economic and potential stability as well as create jobs for the citizens of both countries”

“The organization for economic cooperation and development estimates that implementing the TFA could reduce worldwide trade costs by as much as 17.5 percent, with the greatest benefits accruing to African and other developing countries. Ghana has the potential to benefit significantly from this new opportunity” he added.

About USAID

USAID is the lead U.S government agency that works to end extreme global poverty and enable resilient, democratic societies to realize their potential.

USAID supports Ghana in increasing food security, improving basic health care, enhancing access to quality basic education, and strengthening local governance to benefit all Ghanaian people.

GB&F

Source: CitiBusinessNews

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