Government drops import duties by 50%; vehicles to enjoy 30%

Government in a latest move to make the country’s ports attractive in the sub-region, has announced a 50 per cent reduction in import duties.

“…to reduce the incidence of smuggling and enhance revenue, the benchmark delivery values of import will be reduced by 50 per cent… This will be effective from tomorrow,” Dr Mahamudu Bawumia announced Wednesday.

The decision which takes effect from Thursday, April 4, will see vehicle imports enjoy only 30 per cent reduction, he said at the first ever government’s economic management team’s town hall meeting in Accra.

High import regime in the country has been found to be making the country’s ports uncompetitive and said to have influenced smuggling.

He argued port revenues depended largely on the volumes, but observed the high cost of Ghana’s import regimes was not facilitating trade.

“We are looking at increasing revenue and to do so we cannot be uncompetitive between Ghana and our next door neighbours,” he noted.

Dr Bawumia explained the decision to reduce vehicle imports by just 30 per cent stems from the fact that currently vehicles “attract an amount of depreciation which if you factor in will take you to close to 50 per cent.