The President of the Ghana Union of Traders Associations (GUTA), Joseph Obeng, has called for a significant reduction in taxes on imported goods, highlighting the burden they place on traders.

Mr. Obeng’s plea comes amid revelations of widespread tax evasion facilitated by customs officials accepting bribes to allow smuggled goods into the country’s markets. This situation underscores the challenges faced by traders, who often resort to illicit activities due to the high cost of legal imports.

According to Mr. Obeng, the high taxes on imports have compelled traders to resort to any means possible to evade them. It is alleged that customs officials were taking bribes ranging from ¢20 to ¢200 to let traders transport smuggled goods from neighboring countries into local markets. Mr.Obeng’s comments shed light on the desperate measures traders take to cope with the unbearable tax burden.

“A tax system that is so extortionately high is very unbearable, and this is the problem. Sometimes the customs officer that we say is taking a bribe, the word ‘bribe’ is not a bribe for the trader. It’s a favor that the customs officer has given us (the trader) because we were eventually able to clear our goods. Without that, we couldn’t even have cleared the goods.”
Joseph Obeng, President of GUTA

In his remarks, Mr. Obeng controversially referred to customs officials who aid traders in clearing their goods as “angels.” He argued that these officials, faced with the traders’ inability to pay high taxes, are compelled to accept bribes, which he views as a favor rather than corruption.

Mr. Obeng stressed the need for affordable taxes and a complete overhaul of the tax system to create an environment where customs officials can work with integrity.

“The clearing agent can do the same, and the trader can do the same without even pointing fingers at anyone. Even those people telling us to pay the legitimate taxes and duties and all that, they face the same when they are clearing their goods, they face the same thing and use the same clearing agents.”
Joseph Obeng, President of GUTA

National Conversation on Corruption

Meanwhile, the Ranking Member on the Trade and Industry Committee of Parliament and MP for Bole Bamboi, Yusif Sulemana, expressed concern over the deep-seated corruption revealed by the JoyNews report. He highlighted how the involvement of customs officials in corrupt practices diminishes public trust and emboldens further corruption.

“When Ghanaians see that those responsible for preventing corruption are themselves deeply involved in it, it emboldens them and diminishes their fear of engaging in corrupt practices.
“That is exactly what we are seeing. We have customs officials who will go that low to take 200 cedis, and 400 cedis to aid traders to evade tax, it tells you that our country is sick.”
Yusif Sulemana, Ranking Member on the Trade and Industry Committee of Parliament and MP

Hon. Sulemana called for a national conversation on corruption, emphasizing the urgent need to address the issue to prevent the country’s moral and economic decline.

The situation facing Ghanaian traders, caught between high taxes and the temptation of corruption, underscores the urgent need for reform. Joseph Obeng’s call for a reduction in taxes and a change in the system’s approach to customs and trade reflects the broader sentiment among traders.

Meanwhile, the involvement of customs officials in facilitating tax evasion raises serious concerns about the state of governance and ethics in the country. As stakeholders grapple with these challenges, the path forward requires a balanced approach that addresses both the economic burden on traders and the moral imperative to combat corruption.