The Ghana Revenue Authority (GRA) has refuted claims suggesting that the rate of import duties and other taxes are calculated in dollars.
This comes after the President of the Automobile Dealers Union, Eric Boateng, on Wednesday, May 15, during an interview on Citi Breakfast Show with Bernard Avle expressed his concerns about the impact of duties, particularly those imposed in dollars, on the businesses of second-hand car importers in Ghana.
However, the Ghana Revenue Authority in a statement dated Thursday, May 16, described the said allegation of of calculating duties in dollars as misleading.
“The claims that GRA calculates duties in foreign currency are misleading and should be disregarded. The basis of calculation of duties is provided for in the Customs Act 2015, (Act 891)”, portion of the statement read.
The authority clarified that duties and taxes are not quoted in foreign currency but in Cedis.
“The CIF value is then converted into Ghana cedis at the prevailing Bank of Ghana exchange rate. Rates of duty and other taxes are then calculated on the item in Ghana cedis. The duty and taxes are NOT quoted in foreign currency, but in CEDIS,” GRA clarified.
GRA further explained that the Cost, Insurance, and Freight (CIF) values are quoted in internationally convertible currencies such as dollars, euros, pounds sterling, and others.
“GRA wishes to clarify the issue as follows: Duties and taxes are computed based on the value of vehicles from the country of origin. In addition to the cost of vehicles, Insurance and Freight charges must be added to form the base for the calculation of duty and taxes. The Cost, Insurance and Freight (CIF) values are quoted in international convertible currencies such as dollars, euros, pounds sterling, etc”, the authority added.
Read the statement from Ghana Revenue Authority below:
