Importers in Ghana have welcomed the abolition of the 1% special import levy charged at the ports.
The Finance Minister, Ken Ofori-Atta, announced this among other tax cuts in the budget presentation before parliament earlier today [Thursday] in parliament.
The special levy which was introduced in 2017 by the previous government, has received huge backlash from importers, describing it as a nuisance tax.
Speaking to Citi Business News after the announcement, a Member of the Technical Committee for the Ghana Institute of Freight Forwarders, Johnny Mantey, described the news as a great relief to importers.
“We are very excited and satisfied about the abolition of the special import levy. It is something that we have been looking forward to. That was definitely a nuisance tax which was burdening the importers so this is indeed very welcoming news,” he said.
He added that the abolition will provide an opportunity for importers to channel their resource into expanding their works.
“Government has shown us that it is not just talking, but they walk their talk.“This is way beyond our expectation” he stressed.
Taxes on imported spare parts; kayayei abolished
The Akufo-Addo government has also abolished import duty taxes on spare parts as it promised during the campaign for election 2016.
The other taxes include the tolls charged head porters, locally known as ‘Kayayei’, who move from the north to the south of Ghana, to engage in all kinds of menial jobs.
List of taxes abolished –
The 1% Special Import Levy
Kayayei market tolls
17.5% VAT/NHIL on financial services
17.5% VAT/NHIL on selected imported medicines that are not produced locally
17.5% VAT/NHIL on domestic airline tickets
Duty on imported spare parts
5% VAT/NHIL on Real estate sales
Exercise duty on petroleum
List of reviewed taxes
– Corporate income tax to be progressively reduced from 25% to 20% in 2018
– Replace 17.5% of VAT/NHIL with 3% flat rate for traders
– Tax credits and other incentives for businesses that hire young graduates from tertiary institutions
–Tax incentives for young entrepreneurs
– Reduce special petroleum tax rate from 17.5% to 15%.
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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana.