The Ghana Union of Traders (GUTA) has challenged a statement from the Ghana Revenue Authority (GRA) that customs duties are not calculated in foreign currency.
Contrary to the GRA’s assertion, GUTA claims the opposite is true.
In May of this year, the GRA addressed media reports about customs duties and import taxes on vehicles, stating clearly that these duties are not calculated in foreign currencies.
The GRA explained that duties and taxes on imported vehicles are based on the vehicles’ value in their country of origin, which includes Cost, Insurance, and Freight (CIF) charges, quoted in international convertible currencies like dollars, euros, and pounds sterling.
The GRA further noted that these charges are converted into Ghana cedis using the prevailing Bank of Ghana exchange rate before calculating duties and taxes in accordance with the Customs Act 2015 (Act 891).
In response, GUTA Welfare Officer Benjamin Yeboah maintained that the Ghana Revenue Authority does indeed calculate import duties in dollars and then provides the cedi equivalent for payment.
“They cannot quote in the cedi. You will pay in cedis, but they use the dollar index to calculate. It has always been like that,” he said.
Additionally, he mentioned that GUTA is currently consulting with the government to determine the best approach to manage the depreciation of the Ghana cedi.
Mr. Yeboah noted that the weakening cedi is impacting their operations, and GUTA is urging the government to take immediate action to address the issue.
“We’re still dealing with the cedi depreciation. We are hopeful that the authorities will take immediate action to address the issue. The government has informed us that the Cocoa Syndicated Loan, the third tranche of the IMF Loan, is on its way, and we hope that it will help address the challenges and rebuild our economy,” he explained.
He also pointed out that the cost of goods is likely to rise, particularly when duties are calculated in dollars and subsequently paid in their cedi equivalent.