Bulk Fish Importers Association of Ghana lament impact of taxes on business

Consumers of fish products should expect a hike in the prices of the products in the coming days.

This, according to the Bulk Fish Importers Association of Ghana is as a result of the numerous taxes introduced by government, which is impacting negatively on the cost of doing business in the country.

The Association explains that the increment of the Fish Import Levy from GHC15.00 to GHC 251.00 per metric ton, since January 2023, the recent removal of the 30% benchmark value and the introduction of the recently approved 3 tax bills by parliament is crippling their businesses.

In a statement issued by the Association, the Secretary of the Bulk Fish Importers Association Ghana, Alfred Fugayire Keluru called on government to as a matter of urgency address the numerous challenges facing fish importers in the country.

Below is the full statement:

FISH IMPORTATION BUSINESS ON LIFE SUPPORT DUE TO DRACONIAN TAXES AND LEVIES- BULK FISH IMPORTERS ASSOCIATION GHANA

We the members of the Bulk Fish Importers Association of Ghana, a member arm of the Importers and Exporters Association of Ghana, wishes to bring to the attention of the government and the general public the daunting challenges that has the capacity to affect fish importation/production in the country. With fish consumption constituting more than 60% of Ghana’s protein intake with a per capita consumption of about 25 to 30kg as of the last data, its imperative to also note that Ghana has a fish production deficit of over 60% and this deficit has been largely augmented by fish imported into the system by Association’s members.

With the Bulk Fish Importers Association Ghana and its members importing over 80 % of the country’s total imported frozen fish, there are growing fear of a seeming fish shortage in the country if government as a matter of urgency fails to address the numerous challenges facing Importers of fish into the country.

It Is worth knowing that the challenges facing our members includes

The astronomical increment of the Fish Import Levy from GHC15.00 to US$17.25 (GHC 251) per metric ton, since January 2023. It is very alarming for such a whooping 1,573% increment when businesses across the world are struggling to even adapt to the global economic crises. It worth knowing that neither the views of the Association, it members nor industry players were engaged during the increment process.

Another worrying factor is why the sudden change of the fish levy from cedi to dollars. The recent removal of the 30% benchmark value has also affected our import business, whereas the recent 2.5% VAT increment has become an albatross on our operations.

Another worrying factor is the introduction of the recently approved 3 tax bills by parliament which has since received a Presidential accent. We believe government must reverse the new tax bills which could have an adverse effect on our already struggling sector.

With the Introduction of these new taxes coupled with the already existing taxes, it means customs duty on imports in Ghana is currently pegged at 39.64% on CIF, plus 17.25 dollars per ton. This duty figure as compared to neighboring countries like the Ivory Coast which pays 12.5% customs duty on CIF. Ghana is likely to see a further dip in traffic flow which has been abysmal for the past several months.

It is worrying to note that aside vessels preferring to discharge at Togo and Ivory Coast due to the high cost of doing business at Ghana’s Ports, there has been an explosion in fish smuggling from our neighboring countries, especially Cote D’ Ivoire and Burkina Faso into Ghana. And this has also imparted negatively on our businesses because most of these smuggled fish which are sold across the county are not taxed.

Another worrying trend the association is currently facing is that of the constant harassment by the Ghana Revenue Authority (GRA) and its staff all in the name of revenue mobilization, whereas they the GRA hasn’t created an enabling environment to boost our businesses.

We urged the government to engage the Association and its members when reviewing taxes, levies, VAT and others, since our business constitute 80% of the country’s revenue at the Port.

With the general knowledge that fish prices have increased internationally in costs and charges, making fish import expensive, the ordinary Ghanaian would find it difficult to meet their protein requirement over a possible fish shortage in the country if government fails to put in place measures to address the situation

Members of the association who are in pole positions to continue with the importation of fish, will also not think twice in passing the cost they incur onto the consumer, which could spark a price hikes in fish products across the country.

We as an Association are ever ready to meet to meet government ad this these teething challenges such s the astronomical increase in the fish import levy which has the potential of affecting the fish industry.

Source: Ghana Business