Importers and freight forwarders are anticipating at least 200 dollars cut in cost of clearing goods following the scrapping of the one percent special import levy.
[contextly_sidebar id=”JiDskqtM3qwAW0vZsOg3A18ylAwwml7A”]They say though the figure is marginal, its timely considering the ultimate impact in reducing the burden on businesses.
Finance Minister, Ken Ofori Atta, in the 2017 budget statement identified the one percent special import levy as one of the eight taxes to be scrapped to ease the high cost of doing business.
Parliament has since approved the four amendment bills presented to it by the Finance Minister, Ken Ofori Atta on Tuesday, March 14.
The scrapping is also expected to reduce the prices of imports.
A Technical Committee Member of the Ghana Institute of Freight Forwarders, Johnny Mantey also tells Citi Business News they are anticipating a swift implementation by the Ghana Revenue Authority.
“Duty terms are paid on Cost, Insurance and Freight…as such to have one percent off 20,000 dollars or more is a great relief. It is significant because if you look at the quantum of goods that are cleared, this is very laudable,” he said.
“Once the Parliament has granted the approval, we would want the Commissioner General to go through the necessary procedures and automate them into the system for it to take effect as soon as possible,” he added.
The levy which is charged on the Cost, Insurance and Freight value of importers has been cited as a nuisance tax as it has increased the cost of doing business.
For instance in the World Bank’s latest ease of doing business report, Ghana inched up by three points to the108th position.
Though this is good, analysts have stressed the need to further lessen the processes of acquiring business permits and ultimately streamline the activities of all agencies so private business can thrive.
The other tax cuts that have since been approved by Parliament include the Income Tax (Amendment) Bill, Special Petroleum Tax (Amendment) Bill, as well as the Customs and Excise (Petroleum Taxes and Petroleum Related Levies) (Repeal) Bill.
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By: Pius Amihere Eduku/citibusinessnews.com/Ghana