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Business News of Monday, 12 August 2013

Source: Daily Guide

Confusion over special import levy

Confusion broke out between importers and clearing agents at the Tema Port last week following the implementation of the Special Import Levy (SIL) by officials of the Customs Division of the Ghana Revenue Authority (GRA).

The implementation of SIL was greeted with anger, as some importers thought their agents were out to dupe them, but GRA officials confirmed that it was a mandated tax component from government.

Despite the explanation, a number of importers were reluctant in paying the new levy, claiming many taxes imposed on their imported goods in recent times in the country’s ports could collapse their businesses taking into account the struggle they go through to clear their goods.

Other importers, who could not pay the new import duties, abandoned their goods at the port and threatened to resist the move through a demonstration.

Prior to the introduction of the 2% SIL, goods like fertilizers, energy saving bulbs, bicycles, outboard motors and generators were free, but importers last week had the shock of their lives when they were asked to pay between 1 per cent and 2 per cent for these items as import duties.

It is obvious the new tax may be passed onto consumers who patronize these goods in the wake of the rapid deterioration the Cedi against the dollar.

Some importers, who spoke to DAILY GUIDE, said the two per cent SIL, which would be imposed on almost all imported items including cars, would worsen the plight of many Ghanaians who are suffering to make ends meet.

The new levy also applies to all imported foodstuff and would take the level of import duties and taxes on imported foodstuff to 39.5 per cent compared to 2.5 per cent in neighbouring countries such as Ivory Coast, a difference of 37%.