The Ghana Importers and Exporters Association has hinted at price increment on goods and services, following the announcement of new tax levies.
This was in a statement signed by the Executive Secretary, Samson Asaki Awingobit.
“With the imposition of the Covid-19 Health Recovery Levy which will see the standard VAT rate adjusted upwards to 19.25% from its previous rate of 18.125%, consumers must be made aware that such increment will be applied to goods imported or exported in and out of the country,” part of the statement read.
Effective Saturday, May 1, 2021, the Ghana Revenue Authority (GRA) will implement the 1% COVID-19 Health Recovery Levy.
The new levy, according to the government, will help raise revenue to support COVID-19 expenditure and will also be an addition to existing sales taxes.
The statement added that the increment was also as a result of the Flat VAT rate changes from 3% to 4%, with the increment being the 1% COVID Levy,
“Based on these, the Importers and Exporters Association of Ghana, wants Ghanaians to expect a marginal increase in goods imported into the country by its members, which will be onwardly transferred to the buyer,” the statement added.
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The Association lauded a suggestion by a former Finance Minister, Seth Tekper, for the government to scrap the said 1% COVID-19 levy in the future when it manages to recoup monies expended during the pandemic.
The statement, however, noted: “We wished the said suggestion could have been implemented by the erstwhile Mahama administration of which Mr Tekper was the Finance minister when it introduced the Special Tax Recovery Levy.”