The Ghana Revenue Authority (GRA) has firmly dismissed allegations that it calculates customs duties using foreign currency, specifically the U.S. dollar. This assertion was made in response to recent claims that have been circulating in the media, suggesting that importers are required to settle duties and taxes in foreign currencies.
In a press release issued on Thursday, May 16, the GRA clarified that these allegations are unfounded and misleading. The authority emphasized that its procedures for assessing duties are strictly governed by the Customs Act 2015 (Act 891), which mandates that all duties and taxes are calculated based on the Ghanaian cedi, the national currency.
“The Ghana Revenue Authority (GRA) has followed media discussions on the computation of customs duties and other import taxes on vehicles in foreign currency. The claims that GRA calculates duties in foreign currency are misleading and should be disregarded,” the statement read.
The GRA’s clarification comes in the wake of a media interview with Eric Boateng, president of the Automobile Dealers Union, which went viral. In the interview, Boateng argued that the imposition of duties in foreign currencies adversely affects the domestic car import industry. He claimed that despite stable global vehicle prices, the requirement to pay duties in dollars significantly burdens importers, impacting the overall market.
Boateng’s comments sparked widespread debate, with many questioning the GRA’s practices. He stated that importers must pay their duties and taxes in dollars before clearing their shipments, contradicting the GRA’s procedures. However, the GRA has categorically denied these allegations, insisting that all duty calculations are conducted in cedis.
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The GRA further explained that the calculation of duties and taxes on imported vehicles is based on several factors, including the vehicle’s country of origin, cost, freight charges, and insurance expenses. These factors are meticulously assessed to ensure that the correct amount of duty is applied, all within the framework of the Customs Act.
“The basis of calculation of duties is provided for in the Customs Act 2015, (Act 891). The assessment of duties and taxes on imported vehicles is determined primarily by the country of origin, the vehicle’s cost, freight charges, and insurance expenses,” the GRA clarified.
The authority urged the public to disregard any misinformation regarding its operations, reaffirming its commitment to integrity and accountability in its mandate to collect revenue for national development. The GRA highlighted its dedication to transparent and fair processes, aiming to dispel any doubts about its procedures.
The controversy arose following increased scrutiny of the GRA’s operations and the impact of its tax policies on various sectors. Critics, including the Automobile Dealers Union, have been vocal about the perceived challenges posed by the current tax regime. They argue that high duties and the requirement to pay in foreign currencies place an undue burden on businesses and consumers alike.
In response, the GRA has reiterated its adherence to legal provisions and its focus on supporting national development through effective revenue collection. The authority’s clarification aims to reassure stakeholders and the general public of its commitment to fair and transparent practices.
As the debate continues, the GRA’s statement serves as a reminder to us all of the importance of accurate information and the need to rely on official sources for clarification on policy matters. The authority remains open to engaging with stakeholders to address concerns and improve its operations in line with national interests.