The Executive Secretary of the Importers and Exporters Association of Ghana, Samson Awingobit, has lauded government for his announcement of a cancellation of the 1 percent import levy.
He is however appealing to the government to scrap the 2 percent levy, which largely affects second-hand clothing dealers.
“If parliament accepts this budget and approve it, the 1% special import duty will be abolished; but we still want to appeal to the ministry of finance that the special import levy we have 1% and 2%. The 1% people will be very happy to hear that the special import levy is gone; but we want to appeal to the ministry that it has 2% hiding there and of cause, maybe their attention wasn’t drawn; but we want to draw their attention that those who bring in second-hand clothing and other things at Kantamanto, they are still affected by the 2% special import levy.”
Mr. Awingobit in an interview on Eyewitness News, said the association welcomes all of the tax cuts and is confident they will help private businesses expand and help strengthen the country’s economy.
Ghana’s Finance Minister, Ken Ofori Atta announced on Thursday [March 2, 2017], during the delivery of the 2017 budget statement that government had abolished about twelve taxes including the 1% special import levy.
Some members of the opposition National Democratic Congress (NDC) have expressed dissatisfaction with some of the cuts introduced by the government, but Mr Awingobit noted that, the reduction in taxes on the importation of raw materials would have positive effects on the economy.
“If raw materials import duties have been abolished and you produce locally, commodity prices will come down and you will produce more quantities for local consumption and even export to other countries,” he noted.
He said government’s one-district one-factory policy, which was announced to commence this year, will also help the country produce more products it consumes locally to move the country from being import driven.
A former Deputy Minister of Finance, Cassiel Ato Forson, described the budget statement as deceptive and populist. According to him, the budget does not fit into the country’s medium-term objectives and will lead the country into difficult times.
He said the tax cut among other developments announced by the government will only worsen the situation of Ghanaians and would lead to dumping of inferior goods.
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(Via: CitiFM Online Ghana)
