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in Vaultz Business, Sub Top Stories2

GUTA calls for reduction in rent charges

Maynard Championby Maynard Champion
January 20, 2021
Reading Time: 3 mins read
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President of the Ghana Union Traders Association (GUTA), Dr Joseph Obeng, has expressed the need for government the Ghana Revenue Authority to avoid non-discriminatory taxing of businesses and ensure uniformity.

President of the Ghana Union of Traders Association, Dr. Joseph Obeng.

The Ghana Union of Traders Association (GUTA) has described the increasing charges at the port as a worrying phenomenon for traders and importers alike.

Pleading on behalf of the Association for government’s intervention in reducing the rent charges on containers, the President of GUTA, Dr. Joseph Obeng, said government should maintain the initial charges.

He further revealed in an interview that, the development needs urgent attention from stakeholders, particularly as it could have adverse implications on price of goods and services in the country, moving forward.

“The containers that we have been renting has gone astronomically high, this is impeding importers. Most importers are not importing at this time. A lack of productivity in China and Europe is leading to containers coming in empty”.

Joseph Obeng

Meanwhile, the Ghana Exports Promotion Authority (GEPA), has expressed its intent on making some arrangements to enable entrepreneurs and importers from the edge of this phenomenon.

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The Deputy CEO of GEPA, Samuel Dentu noted that even although government does not have absolute hold on the business activities of these international shipping lines, negotiations will be theor best resort.

“We have had lots of meetings with organizations in the freighting business to ensure that the goods of traders don’t get stuck offshore. GEPA does not have the authority to slash down prices. Meanwhile, we are in talks with the freight companies to be a middle organization that brings both parties together to ensure an affordable price for traders”.

Samuel Dentu
  • GEPA to engage stakeholders on freight charges reduction

GUTA in a statement the previous year had entreated government to earnestly appeal to the Ghana Ports and Harbours Authority (GPHA) and shipping lines to give unconditional waivers on demurrage and rent charges during the lockdown period.

According to the statement, the Association expressed their displeasure that despite the lockdown affecting Greater Accra, Tema, Kasoa and Greater Kumasi, ultimately leading to the closure of their businesses, shipping lines which were exempted from the restrictions “are asking that since they are still working, our members whose goods have arrived at the ports should clear them or pay demurrage if the containers continue to remain at the ports during this lockdown period”.

“The Ghana Ports and Harbor Authority is also asking importers to clear their goods from their warehouses or pay further rent charges,”

This, the Association explained, has been quite cumbersome as the closure of its members’ businesses in adherence to the lockdown procedures has left many of them with little to no funds to pay the duties at the ports.

GUTA further insisted that, in spite of persistent calls through the Ministry of Trade and Industry and the Ghana Shippers Authority to the GPHA and Shipping lines, their pleas have not be heeded to.

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“It is quite sad that to them it is business as usual while the importer, because of the national interest, is adhering to government’s directives so as to ensure that we all fight this very contagious pandemic together”.

GUTA is, therefore, asking the government to waive the demurrage and rent charges unconditionally during this lockdown period.

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