Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has unveiled plans to rationalize taxes and levies on imported goods to boost revenue generation and improve economic efficiency.
The initiative aims to simplify the tax structure, eliminate redundancies, and create a more transparent, business-friendly system for importers. Ghana’s current import taxation framework operates under the ECOWAS Common External Tariff, with rates varying from 0% for essential goods to 35% for finished consumer products and key development items. Additionally, a 0.2% levy is imposed on eligible imports from non-African Union countries under the African Union Import Levy Act of 2017.
Speaking on X ahead of the 2025 budget, Dr. Forson emphasized that the government is working to ensure that all taxes and levies on imported goods are properly accounted for, noting that some of the revenues may not be reaching the central bank. An investigation will be conducted to determine the proper flow and utilization of these taxes.
The minister also highlighted that tax exemptions, particularly for Value Added Tax (VAT), Personal Income Tax (PIT), and import duties, have resulted in significant revenue losses, estimated at 3.9% of Ghana’s Gross Domestic Product (GDP). Rationalizing the tax structure, he explained, would help reduce revenue leakages and ensure a fairer, more efficient tax system for businesses.
Dr. Forson further stated that simplifying the taxation process by removing overlapping levies would make it easier for businesses and importers to comply with tax laws, reduce evasion, and ultimately increase government revenue without placing excessive financial burdens on traders.
Importantly, he noted that rationalizing taxes on imports would help create a more predictable business environment, boost trade, and contribute to Ghana’s economic growth. He assured the youth, traders, and business owners that the government remains committed to improving living standards for all.
