The Customs Division of the Ghana Revenue Authority (GRA) is counting on higher volumes of vehicle imports to help close a widening revenue gap as the local currency’s recent appreciation drives down import duties.
Commissioner of the Customs Division at the GRA, Brigadier General Glover Ashong Annan, said the cedi’s strength has cut vehicle import duties by about half, posing risks to the division’s revenue outlook.
He expressed confidence that rising import volumes will offset the shortfall. The commissioner made the remarks during a working visit to the Tema Port.
“The appreciation of the cedi has also impacted on the revenue but that is not all. We can do more to increase the revenue even though the appreciation [of the cedi] has impacted. For example vehicles which fetch us more revenue, the duties paid on these vehicles have reduced drastically. It is almost like half.”
The Customs Division of GRA is under pressure to meet ambitious revenue targets amid currency volatility and efforts to curb leakages at the country’s entry points.
It is also good because moving forward, those who are benefiting from the reduced duties will import more. Going forward, we know that the volumes will increase. By next month, we will see more volumes coming in and that will also impact on our revenue,” Brigadier General Glover Ashong Annan said.
Finance Minister Dr. Cassiel Ato Forson for instance has expressed deep frustration over what he describes as massive revenue leakage at Ghana’s Tema Port, warning that he may be compelled to relocate his office there to tackle the growing smuggling menace.
Dr. Forson raised alarm over the scale of illicit trade operations happening under the radar at the country’s busiest port.
According to him, smuggled goods, especially from neighbouring Togo, are infiltrating Ghana’s market, bypassing the proper tax and customs processes.
