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‘GH¢74,000 duty tax on a GH¢114,000 car, how?’ – Franklin Cudjoe questions

Franklin Cudjoe, President IMANI Africa

Tue, 18 Apr 2023Source: www.ghanaweb.com

President of Policy Think-Tank, IMANI Africa, Franklin Cudjoe has lamented Ghana’s harsh import levies and taxes.

In a post on micro-blogging platform, Twitter, Franklin Cudjoe questioned the rationale behind paying import tax more than half the value of the imported product. According to him, Ghana’s import tax can simply be described as a state-motivated crime.

“How do you buy a car abroad for GHS 114,000 and pay a total tax of nearly 74,000 just to clear the car for use? This is state-sponsored thuggery,” Franklin Cudjoe explained in a tweet published on his Twitter page.

He added that, the phenomenon accounts largely for the practice of tax evasion at the various borders and ports of the country.

“This is why importers collude with custom officers to evade taxes,” another part of the tweet read.

Earlier this year in January, the Association of Customs House Agents, Ghana (ACHAG) expressed their disappointment in the government over the complete reversal of the discount policy on import duties at the ports.

Speaking on behalf of the association, Yaw Kyei, the president of the association explained that his outfit is unhappy because of the exchange rate volatility negatively affecting trade. He said the discount policy served as a cushioning for importers.

The Government of Ghana, through the Customs Division of the Ghana Revenue Authority, in 2019, applied a 50 percent discount on duties payable on all general goods, and 30 percent discount on vehicles to encourage more importation and tax compliance as well as alleviate the economic burden on the trading and consuming public. This discount was further reduced to 30 percent and 10 percent respectively in 2021. However, beginning January 1, 2023, the discount policy has been scrapped.

Here is Franklin Cudjoe‘s tweet

How do you buy a car abroad for GHS 114,000 and pay a total tax of nearly 74,000 just to clear the car for use? This is state-sponsored thuggery. This is why importers collude with custom officers to evade taxes.— Franklin CUDJOE (@lordcudjoe) April 18, 2023

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