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Ghana to suspend import VAT due to concerns about raising prices

Ghana’s government has reverted the decision of charging import VAT on as much as 64 commodities from March 1, 2018.


Devdiscourse News Desk
Updated: 22-03-2018 15:50 IST
Ghana to suspend import VAT due to concerns about raising prices

The GRA, however, maintained it came out with this plan as a solution to stop tax evasion. (Image Credit: Pxhere)

Ghana's government has asked the Ghana Revenue Authority(GRA) to revert the decision of charging import VAT on as much as 64 commodities from March 1, 2018. Collection of Import VAT on select commodities will come to a halt, with immediate effect.

The import VAT raised concerns among various importers of price hikes ever since it was slapped on these commodities.

Information Minister of Ghana, Mustapha Abdul-Hamid issued a statement on behalf of the Government saying that the hike in import charges was unintended and the suspension of Import VAT came after extensive consultation between Government and stakeholders.

Fumigation levy which was proposed for shippers has also been indefinitely suspended according to the minister's statement.

About the full details of affected products, the statement said, "Further details of affected products will be outlined by the Ghana Revenue Authority (GRA) in due course."

"Government is grateful to all stakeholders for forthrightly participating in the engagement sessions and looks forward to a substantive resolution of the challenges faced by importers and shippers." the statement concluded.

The GRA, however, maintained it came out with this plan as a solution to stop tax evasion.

COUNTRY : Ghana