The Secretary General of the Ghana Federation of Labour (GFL), Abraham Koomson, has criticised the fumigation levy imposed on imported raw materials, describing it as an unnecessary cost burden that is hurting local industries and raising production expenses.
Speaking with the media, Mr. Koomson argued that some imported industrial inputs, including clinker and limestone used in cement manufacturing, arrive in tightly sealed bulk shipments and are not subjected to fumigation. Despite this, importers are still required to pay the levy.
The fumigation levy is charged at Ghana’s ports to cover disinfection and pest-control services on imported goods. The measure is intended to prevent harmful pests, diseases and contaminants from entering the country through imports.
However, Mr. Koomson questioned the rationale behind charging companies for a service that, in some cases, is not provided.
According to him, the continued application of the levy on products that are not fumigated amounts to an unfair financial burden on businesses already grappling with high operating costs.
“Companies are being compelled to pay for a service that is not rendered to them. Such nuisance taxes add extra costs to locally produced goods, making them less competitive,” he stated.
He noted that the additional charges ultimately increase the cost of manufacturing, with businesses often passing on the expenses to consumers through higher prices.
Mr. Koomson warned that such policies undermine efforts to strengthen local production and industrialisation, especially at a time when government is seeking to promote value addition and enhance the competitiveness of Ghanaian-made products.
He further questioned the transparency surrounding the levy and called for greater accountability regarding how the revenue generated from the tax is utilised.
“We need an explanation as to why such taxes are imposed and whether the state genuinely benefits from the revenue generated,” he said.
The labour leader also expressed concerns about the potential impact of the levy on investment and economic growth.
He argued that excessive taxes and regulatory charges could discourage businesses from expanding operations and deter new investors from establishing manufacturing facilities in the country.
According to him, reducing unnecessary costs is essential if Ghana is to create a more conducive environment for business growth and job creation.
Mr. Koomson stressed that government initiatives aimed at boosting economic activity, including the proposed 24-hour economy policy, could face challenges if businesses continue to encounter what he described as avoidable taxes and charges.
He therefore called on policymakers to review the fumigation levy and other taxes that increase the cost of production without delivering clear value to industry.
He maintained that eliminating such charges would help improve the competitiveness of local manufacturers, encourage investment and support efforts to expand industrial production.
Industry stakeholders have consistently advocated for reforms that lower operational costs and improve the ease of doing business, arguing that reducing unnecessary taxes is key to enhancing the growth and sustainability of Ghana’s manufacturing sector.
