The Ghana Shippers’ Authority (GSA) has welcomed the decision by the Ministry of Finance to conduct a comprehensive review of the Value Added Tax (VAT) regime, with the aim to provide relief to the business community.
The decision was founded on the GSA’s longstanding position that the VAT on services provided to transit shippers should be abolished in line with global best practices, and as is the practice in the countries that border Ghana.
The development came to light during a working visit by a GSA delegation to the Ministry of Finance to explore ways to improve the shipping operations to boost Ghana’s international trade, particularly, transit trade.
Issues discussed centered on the VAT on services provided to transit shippers and the implementation of the Exemptions Act among others. Mrs. Monica Josiah, Head of the Operations Department at GSA who led the team said that; “the other benefits Ghana derives from increased transit activities far outweigh any revenue generated from VAT on the services provided to transit shippers.” She therefore advocated for its removal to align with international standards.
Mr. Fred Asiedu-Dartey, Head of the Business Development and Commercial Services Department at the GSA, who added his voice to the call for the removal of VAT on services provided to transit shippers, commended the Ministry of Finance for its decision to review the VAT regime. He expressed optimism that the GSA’s input will be taken into account during the decision-making process.
In response to the request, Mr. Benjamin Kwarfo, who is in Charge of Tax at the Tax and Policy Unit of the Ministry of Finance, acknowledged the importance of the meeting, noting that it was timely as the Ministry was preparing to review the VAT system. He invited GSA to submit a proposal for consideration.
The two (2) organizations also agreed to intensify the education and awareness of the provisions of the Exemptions Act to further enhance international trade and its benefits to the country.
This collaboration is a significant step toward improving trade facilitation by enabling shippers to operate more cost-effectively, ultimately enhancing Ghana’s reputation in international trade.
