The Food and Beverages Association of Ghana has commended the directive by Finance Minister Cassiel Ato Forson banning the land transit of selected imported goods into the country and requiring them to enter through Ghana’s seaports.
Rev. John Awuni, chairman of FABAG, however, called on the government to expand the list of restricted transit goods in order to protect local industries and prevent tax evasion.
He explained that limiting the restriction to only a few products makes it easier for importers to misclassify goods and avoid paying the required taxes.
He was hopeful that expanding the list would curb smuggling, protect government revenue and create a fair trading environment for legitimate businesses.
Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5 FM, Mr Awuni said, “We are not saying that it should only be fruit products.” What we are saying is that the list should be expanded. When you limit it to about four or five products, meanwhile there are thousands of goods coming into the country and many also coming through transit, people can easily misclassify them.
For instance, someone can bring tomatoes which are not on the list and classify them as fruit juice, toilet rolls or beans because those items are not on the list. That is how smuggling and tax evasion happen. That is why we are saying the list should be expanded and made as exhaustive as possible so that people cannot misclassify products and evade taxes and the government can also get maximum revenue for economic development.
He stated that fruit juice was only an example. In Ghana we have a fragile fruit juice industry, including the pineapple factory and other small ones that are coming up, so that industry needs protection.
He added that apart from fruit juice, there are many other products such as toilet rolls and beverages that should also be included.
Some people can go to Nigeria and bring beverages into Ghana and claim that they are sending them through transit to another country such as Côte d’Ivoire. When they declare them as transit goods, they do not pay taxes, but later those products find their way into the country. That is why we are calling for the list to be expanded to include fruit juices, Nestlé products, beverages and others to protect local industries.”
Rev. Awuni stressed that the policy decision demonstrates the government’s commitment to strengthening trade regulation, safeguarding government revenue, and protecting legitimate businesses operating within the country.
By: Justina Ekua Kwofie/Rainbowradioonline.com/Ghana
