The Importers and Exporters Association of Ghana (IEAG) has criticized the introduction of the Veterinary Import levy levied through the Veterinary Services Department, emphasizing that it appears to have been implemented without thorough consideration.
The Importers and Exporters Association of Ghana thus, expressed deep concern over the development at the country’s ports, describing its introduction as a burdensome levy that could significantly impact importers and the business community.
According to a memo from the Veterinary Services Department, importers of frozen products are now required to register and seek import approval by stating product quantity and country of origin before submitting consignment documents through the Integrated Customs Management System (ICUMS) for verification.
IEAG, in a statement signed by its Executive Secretary, Samson Asaki Awingobit, highlighted the excessive financial implications of this levy. Importers of frozen products will be forced to pay between GHS2,500 to GHS2,800 for each container of frozen food, in addition to GHS200 for inspection and GHS500 for lab tests. This amounts to almost GHS4000 for the Veterinary Import Levy per container, he stated.
Mr. Awingobit criticised the high costs imposed on importers for services that the Food and Drugs Authority (FDA) was previously handling at a significantly lower rate. He questioned whether this move was an indication of the FDA’s perceived ineffectiveness or if it was part of a revenue-boosting strategy by the government.
The IEAG warned that if this levy is not revoked promptly, importers would be compelled to pass the additional costs onto consumers, resulting in a notable increase in the prices of goods and services.
They urged the government to reconsider this levy, emphasising its adverse impact on the already struggling maritime industry.
High Taxes And Levies On Imported Fish
Meanwhile, the Bulk Fish Importers Association of Ghana under the IEAG also bemoaned the high taxes and levies on imported fish, noting that high taxes and levies are threatening fish importation to Ghana, a situation they said can lead to a fish shortage in Ghana.
Mr. Samson Asaki Awingobit stated that the Bulk Fish Importers Association Ghana and its members import over 80 percent of Ghana’s total imported frozen fish. He indicated that data showed that Ghana’s fish consumption constitutes more than 60 percent of its residents’ protein intake, with a per capita consumption of about 25 to 30kg.
Awingobit noted that it is imperative to note that Ghana has a fish production deficit of over 60 percent, which has been largely augmented by fish imported into the system by the Association’s members.
They stated that the astronomical increment of the Fish Import Levy from GHC15.00 to US$17.25 (GHC 251) per metric tonne since January 2023, representing a 1,573 percent increment, is very alarming, especially when businesses across the world are struggling to even adapt to the global economic crises.
According to him, neither the views of the Association, its members, nor industry players were engaged during the increment process, questioning why the sudden change of the fish levy from cedi to dollars. “The recent removal of the 30 percent benchmark value has also affected our import business, whereas the recent 2.5 percent VAT increment has become an albatross on our operations,” he stated.
