Introduce new taxes on rice and poultry imports – Economist

Ghanaian economist, Enoch Okonah, is proposing the introduction of an import levy specifically for rice and poultry.

He believes that if implemented effectively, it could contribute to the sufficiency of Ghana's rice and poultry.

The economist expressed concern over Ghana's imports of rice, poultry, and other basic commodities that could be produced domestically.

Enoch Okonah stated that the greater proportion of our inflation growth or rate is a result of the depreciation of our currency.

He explained that a rising level of imports and a growing trade deficit can negatively affect a country's exchange rate and the local currency.

Enoch Okonah He also indicated that higher inflation can impact exports by directly affecting input costs such as materials and labor.

He said that when there are more imports coming into a country than exports, it can distort the nation's balance of trade and depreciate its currency.

He noted that the depreciation of the cedi can significantly impact the everyday lives of Ghanaians because the value of a currency is one of the biggest determinants of a nation's economic performance and its Gross Domestic Product (GDP).

To help address the challenge in the medium term, he advised the government to reduce the importation of commodities.

"Another thing we can do to help reduce our inflation is to reduce importations. We have to reduce imports and promote domestic production. If we produce and consume what we eat, it will reduce imports, which in turn will reduce inflation. Let's tax rice imports to finance rice production. We should levy rice importation and establish the Rice Development Fund so the levy will be kept in the fund so rice farmers in Ghana will access the fund at cheaper rates to expand their farms. We should do the same for the importation of poultry. Introduce a levy on the importation of poultry to fund poultry farmers in Ghana. Over time, our cedi will appreciate."

"The largest proportion of our inflation growth is a result of the depreciation of the cedi. If we solve this problem, inflation will reduce," he stated.

Speaking with Dr. Ren on Rainbow Radio 92.4FM, he also advised the government to renegotiate its conditions with the International Monetary Fund (IMF), which has prevented the Bank of Ghana (BoG) from intervening in the forex market.

He suggested a potential agreement with the IMF to alleviate the situation and enable the central bank to intervene in the forex market.