A Technical Committee Member of the Freight Forwarders’ Association of Ghana, Johnny Mantey has described the extension of the 2% import levy as unfortunate and unnecessary.
According to Mr. Mantey, a consultative forum among the various associations within Ghana’s trade chain will meet to deliberate on the way forward on the 2% special import levy.
The Finance Minister, Ken Ofori-Atta revealed during the 2018 budget reading that, government was extending the 2% Special Import Levy to the end of 2019.
Speaking to Citi Business, Mr Mantey admitted that there could be a reason why government is maintaining the 2% import levy, but it still needs to be removed.
“We’ve always maintained that the 2% is only adding on to the cost of doing business. We expected it to be taken off during the first budget reading, because it cuts across almost every commodity, but instead the 1% levy was taken off. The government might have its reasons why it has maintained the 2% levy, but for us it has to go”
Government introduced the Special Import Levy in July 2013 as a “stop gap” tax on specialized imports to the country in an effort to raise revenue to support shortfalls in the 2013 fiscal budget year.
Although the levy was supposed to be in place for three years—which means it should have ended in 2015— it has been extended to 2019.
Source: citibusinessnews.com