Vice President of The Ghana Union of Traders Association (GUTA), Joseph Paddy, says importers are currently facing significant increases in duties following the introduction of the Publican AI system for import clearance at the ports.
Speaking on Super Morning Show on April 14, he describes the situation as troubling, citing instances where duty charges have risen far beyond previous levels.
“For example, a product that used to attract about $70,000 duty on a Voxy is now going for about GH₵13.7 million,” he said.
Mr Paddy questioned how such a surge is possible, explaining that on April 2, a declaration filed for a 2012 Toyota Voxy initially placed the duty value at about GH₵7.7 million.
“I can provide the evidence,” he added.
According to him, the new system is placing a heavy financial burden on businesses, affecting both operations and capital.
His comments come amid the Ministry of Finance’s defence of the introduction of the Publican AI system for import clearance, following growing concerns from industry stakeholders, particularly freight forwarders.
“This is what the AI system is doing to the business community. It is not just taxing our companies, it is taxing our capital,” he stated.
He disclosed that several complaints have been submitted to the Ministry of Finance, with further engagements held with the Commissioner-General.
Mr Paddy noted that although authorities indicate there has been a 40 per cent reduction in some duty values under the AI system, many importers are instead experiencing increases of over 100 per cent, with some rising as high as 500 per cent.
He also raised concerns about the lack of clarity in the appeals process.
“Previously, we could submit appeals through Customs, but now when you go there, you are referred to the Ministry of Finance, and it is unclear which desk to engage,” he explained.
He added that nearly all appeals filed so far have been unsuccessful.
Mr Paddy warned that the development could lead to a rise in the prices of goods and services if the situation persists.
He cited an example where a vehicle with a market value of about GH₵150,000 is now attracting a duty value of close to GH₵8 million, stressing that such costs will ultimately be passed on to consumers.
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Source: www.myjoyonline.com