To prevent Ghana from losing its competitive advantage to regional ports like those in Lomé and Abidjan, the Ghana Ports and Harbours Authority (GPHA) advocates eliminating VAT charges on transit goods.
According to the A.g Director General (DG) of GPHA, Brigadier-General Tanye-Kulono, the move would put Ghana in a position to draw more foreign business and improve its economic status by making it a far more competitive transit center in the West African sub-region.
In addition to making Ghana's ports more appealing to international trade, he argued that eliminating VAT on transit cargo would generate a significant number of job opportunities, support the government's continuous efforts to boost economic growth and be in tune with its 24-hour economic policy.
The A.g DG made these statements during a familiarisation tour of the Authority by the Minister of Transport, Hon. Josphe Bukari Nipke, in Tema.
He motioned that the Authority was facing operational challenges that impacted port efficiency. Key among them was the frequent breakdown of scanners at the Meridian Port Services (MPS) terminal, which caused significant delays during container processing. In addition, the worsening condition of access roads and the urgent need to dredge the Tema Port were also factors.
The GPHA received assurances from Transport Minister Joseph Bukari Nikpe that the government would maintain the competitiveness of Ghana's ports.
“We don't have any business charging for items that aren't intended for our economy, in my opinion. This is a worthwhile point for us to examine," he said.
The Minister agreed that the COVID-19 tax needed to be reviewed and assured that the ministries of Finance and Transport would talk about potential changes.
To better connect government policy with the demands of the maritime sector, the Minister also visited the Tema Shipyard, and Meridian Port Services in the company of officials from GPHA.