Ghana: Tax hikes of over 1500% to affect seafood imports

Published 2023년 7월 4일

Tridge summary

The government of Ghana plans to increase import taxes on frozen seafood by a staggering 1,573 percent, which would cost importers around GH¢251 per metric tonne. The tax will be paid in US dollars, which are currently scarce in the country. This tax hike could potentially reduce imports and result in a decrease in fish supplies in the local market, leading to importers choosing to discharge their shipments in neighboring countries.

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Original content

Government will increase import taxes on frozen seafood by 1,573 percent from the current GH¢15 to about GH¢251 per metric tonne, the United States Department of Agriculture (USDA) has said in its second quarter foreign agricultural service report. The tax, the USDA said, will be paid in US dollars – which are in short supply. The tax hike, according to the Department, could cut imports and cause fish supplies to reduce on the local market. Elimination of the benchmark value discount policy and increase in Value Added Tax (VAT) are some other challenges that have the potential to affect imports of seafood trade in the country. Indeed, these taxes are already making doing business in Ghana’s major port of Tema unattractive to importers, especially with the current economic situation. The report indicated that due to these tax measures, vessels prefer to discharge at neighbouring countries such as Togo and Cote d’Ivoire then truck over the border tax free. Despite the taxes, rapid ...

Source: Thebftonline