IEAG Assures Lower Port Business Costs as Government Unveils Tax Relief Measures
The Importers and Exporters Association of Ghana (IEAG) has expressed confidence that the cost of doing business at the country’s ports will decline markedly from next year, following the government’s proposed tax relief measures.
According to the Association, the planned removal of the COVID-19 Health Recovery Levy and the Electronic Transfer Levy (E-levy), alongside a reduction in the Value Added Tax (VAT) rate from 21.9 per cent to 20 per cent, is expected to significantly lower transaction costs for businesses operating at the ports.
Speaking to Citi Business News, Executive Secretary of the IEAG, Samson Asaki Awingobit, described the proposed reforms as a major boost to the import and export sector, which has borne the brunt of multiple taxes and levies in recent years.
He commended the government for what he described as a clear willingness to engage the private sector, noting that the measures signal maturity and resilience in the country’s economic management approach.
Mr. Awingobit further assured that importers and exporters would pass on the benefits of the tax cuts to consumers through reduced prices.
“Across the economy, the new government has shown maturity and preparedness to work with the private sector. We want to assure the President that prices of goods will reduce once these taxes are fully implemented. Prices have already started coming down, and they will reduce further when COVID-related costs are completely removed at the ports,” he stated.
He added that the proposed VAT reduction could also enhance tax compliance among businesses.
“With VAT reducing from 21.9 per cent to 20 per cent next year, compliance levels will also improve. We encourage all importers to make proper declarations,” Mr. Awingobit said.
