By King Amoah Kumasi
The Vehicle and Assets Dealers Union of Ghana (VADUG) has expressed concern over what it describes as the exploitative practices of shipping lines and the opaque system of customs duty collections at Ghana’s ports.
Nana Yaw Nsiah, the 2nd Vice President of VADUG and Managing Director of Nsiah Automobile Company has passionately appealed for the establishment of a standard, flat rate system for import duties, arguing that the current practices are crippling importers and undermining government efforts to stimulate the economy.
While commending the administration of His Excellency President John Dramani Mahama’ for its progress in stabilizing the cedi against the US dollar a move that has eased operational challenges for automobile importers, Mr. Nsiah highlighted a new pervasive threat to the business communities .
He indicated that despite the government’s positive interventions shipping lines have engaged in what he termed as contemptuous disregard for national exchange rate regulations.
Instead of complying with the existing Bank of Ghana rate, these shipping lines treat our nation’s exchange rate regulations with contempt and charge importers whatever they like, Nana Yaw Nsiah stated in an exclusive interview.
He questioned the legality and transparency of these actions as he demands urgent clarification.
The VADUG Vice President stressed that the modest profits that importers now able to gain due to government tax reductions are being siphoned off into the coffers of the shipping lines.
He stressed that this action renders the government’s intended support for businesses effectively useless.
Adding to the woes of the importers Mr. Nsiah expressed his dismay at the alleged arbitrary practices of Customs Officers at the ports.
He accused them of employing a multi tiered approach to duty tax collection which he deemed unacceptable.
According to Nsiah rather than operating under a standardized and flat rate system Customs Officers are allegedly using their discretion to arbitrarily reduce, appreciate or increase custom duties, leaving importers with no recourse to challenge these decisions.
An importer would have the opportunity to enjoy low custom duties when that person brings in an influential person to plead on his behalf Nana Yaw Nsiah alleged, painting a picture of a system susceptible to undue influence and lack of fairness.
This practice he noted stifles genuine business activity and creates an uneven playing field.
In a bid to foster greater transparency and predictability, Nana Yaw Nsiah has implored the Customs and Harbour Authorities to implement a standard flat rate system for custom duties.
He proposed specific benchmark rates such as GHC20, GHC30, or GHC50, as a starting points to ensure uniformity and clarity for all stakeholders involved in the import sector.
Furthermore the VADUG executive urged the government to launch a thorough investigation into the prevailing harsh tax impositions on importers.
He believes that such an inquiry is crucial to liberate import businesses and to enable them operate without pervasive fear and panic.
