The Ghana Revenue Authority (GRA) has denied allegations that import duties are calculated in dollars, calling such claims “misleading.”
Eric Boateng, President of the Automobile Dealers Union, raised concerns about the impact of duties on second-hand car importers, suggesting during an interview on the Citi Breakfast Show with Bernard Avle on May 15 that these duties are imposed in dollars.
In a statement released on May 17, the GRA urged the public to disregard these allegations, clarifying that duties and taxes are calculated in Ghana cedis as stipulated in the Customs Act 2015 (Act 891).
“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),” the statement read.
The GRA explained that while the Cost, Insurance, and Freight (CIF) values are quoted in international currencies, the conversion to Ghana cedis is done at the prevailing Bank of Ghana exchange rate. Duties and taxes are then calculated 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,” the GRA emphasized.
Further clarifying the process, the GRA stated that duties and taxes are computed based on the value of vehicles from their country of origin, including Insurance and Freight charges.
“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 statement indicated.
Source: www.ghanaweb.live