After extensive consultations between government and various stakeholders, the Economic Management Team (EMT) has announced it has since March 1, 2018 suspended the import VAT on 64 commodities.
According to a statement signed by the Information Minister, Mustapha Hamid, the suspension of the Import VAT and the Fumigation Levy has become necessary as a result of the “unintended hike in import charges.”
“The Economic Management Team (EMT) has instructed the following; that the Ghana Revenue Authority (GRA) suspends, with immediate effect, the charging of Import VAT on the 64 commodity groups, which started on March 1, 2018 leading to an unintended hike in import charges” it noted.
Among the items of the suspended 64 commodity groups include; mobile phones, electrical transformers, tractors for agricultural purposes, solar cells, musical instrumentals, outboard motors, concrete, motor mixes, day old chicks.
‘’Further details of affected products will be outlined by the GRA in due course,’’ the statement added.
The Ghana Revenue Authority (GRA) however, has been directed to immediately halt the collection of Import VAT on some 64 commodities and also indefinitely suspend the Fumigation Levy for shippers.
The GRA earlier introduced the tax stamp and monitoring exercise which has been opposed by some key business associations in the country.
Some of which include the Ghana Union of Traders Association (GUTA) and the Ghana Institute of Freight Forwarders who maintain they are unable to bear the additional cost the policy was demanding.
The GRA has also maintained the policy was necessary to stop tax evasion.
The statement further explains that the suspension of the Import VAT “is pending an assessment of Harmonized code (HS Codes) for customs which were reviewed effective same date.”