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The acting Director General of the Ghana Ports and Harbours Authority (GPHA), Brigadier General Paul Siedu Tanye-Kulono, has appealed to government to consider the removal of the COVID-19 and Value Added Tax (VAT) on transit cargoes to boost business and promote efficiency at the ports.
According to him, the imposition of these taxes served as disincentive to transit business and increased the cost of doing business in the country.
Brig-Gen. made the appeal when he welcomed the Minister of Transport, Joseph Bukari Nikpe, to his office last Wednesday as part of his working tour to the GPHA.
The Director-General also stated that the removal of these taxes and levies would ensure low operating cost for businesses and also make the country’s ports attractive for transit trade.
“The transit market is highly competitive, and any disruption can lead customers turning to other regional ports like Lomé and Abidjan.
We believe that, since the cargo is not destined for Ghana, it would be beneficial for the government to consider removing these VAT levies to encourage more businesses and generate additional employment opportunities,” he emphasised.
Mr Nikpe on his part said his outfit would pick up the issue with the Ministry of Finance to find ways of reviewing the governing laws on taxes and levies and other government bureaucracies hampering business at the ports.
He stressed that the higher transit fees could compel landlocked countries like Burkina Faso, Mali and Niger to choose other trade corridors in West Africa, such as ports in Togo, Côte d’Ivoire over Ghana.
Mr Nikpe further indicated that even though he agreed that government generated revenue from these levies, it risked reducing overall trade activity if businesses seek cheaper alternatives as such there was the need to revisit and possibly revise some of the laws governing these levies.
He also disclosed plans by government to review taxes and levies to facilitate business and trade activities at the country’s seaports.
The move, according to him, was part of the President John Mahama’s vision to reset the country, boost economic growth and position it as a preferred investment and trade hub.
He encouraged the heads of department and general staff of the GPHA to rally behind the new DG, in readiness and preparation to support the government’s economic reset agenda, especially the 24-hour economy to turn around the economic fortunes of the country with emphasis on GPHA as a key stakeholder.
FROM KEN AFEDZI, TEMA
