Ban on selected transit goods by land will boost government revenue – FABAG

The Food and Beverages Association of Ghana (FABAG) has commended the government for its immediate ban on the land transit of nine products.

The measure, aimed at tightening border controls, curbing revenue leakages and safeguarding government income, covers rice, sugar, flour, cooking oil, pasta and spaghetti, canned tomatoes, frozen products, textiles and pharmaceutical products.

In a statement issued by the Executive Chairman of FABAG, John Awuni, the Association noted that the policy reflects the government’s commitment to strengthening trade regulation, protecting legitimate businesses and securing national revenue.

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“For a long time, Ghana has lost substantial revenue due to widespread abuse of the transit regime. Unscrupulous traders have declared goods as transit cargo bound for neighbouring countries, only to divert them illegally into the Ghanaian market through land borders without paying the required duties and taxes,” the statement read.

FABAG emphasised that the ban will significantly reduce the risk of diversion and smuggling.

The Association further urged the government to expand the directive to include additional goods such as fruit juices and similar products.

Awuni cautioned that some traders may attempt to circumvent the ban by misclassifying restricted items under other categories to evade the new controls.

Expanding the scope of the directive, FABAG argued, would close potential loopholes, increase government revenue and ensure fair competition in the market.

SA/MA

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