The Ghana Shippers’ Authority (GSA) has thrown its weight behind a planned overhaul of the country’s Value Added Tax (VAT) system, endorsing the Finance Ministry’s push to reevaluate tax policies affecting transit services.
The move, aimed at aligning Ghana’s practices with international standards, seeks to reduce financial burdens on businesses engaged in cross-border trade and bolster the nation’s competitiveness in regional commerce.
During a recent meeting with Finance Ministry officials, GSA representatives reiterated their years-long call to scrap VAT on services for transit shippers, arguing that neighboring countries and global trade hubs already exempt such charges. Monica Josiah, Head of Operations at the GSA, emphasized that the economic advantages of robust transit trade—such as job creation, port traffic, and regional partnerships—far exceed the short-term revenue from VAT. “Retaining this tax undermines Ghana’s potential as a trade gateway,” she stated.
Fred Asiedu-Dartey, Head of Business Development at the GSA, praised the ministry’s openness to reform, noting that streamlined taxes could attract more shipping operators to Ghana’s ports. “This review is a chance to position Ghana as a leader in trade efficiency,” he said. The authority has been invited to submit a formal proposal outlining its recommendations, signaling a collaborative approach to policy revision.
Benjamin Kwarfo, a senior tax policy advisor at the Finance Ministry, confirmed the dialogue’s timing aligns with broader efforts to modernize Ghana’s tax framework. He acknowledged the GSA’s concerns, stressing the need for reforms that balance fiscal needs with trade growth. Both parties also pledged to ramp up public education on the Exemptions Act, a law designed to simplify trade-related tax waivers but often underutilized due to limited awareness.
Industry analysts view the partnership as a critical step toward reducing operational costs for shippers, which could enhance Ghana’s appeal as a transit hub. With landlocked neighbors like Burkina Faso and Niger relying on Ghanaian ports for imports, easing tax pressures may deepen regional trade ties and counter rival ports in Togo and Côte d’Ivoire.
While the Finance Ministry has not set a timeline for the VAT review, stakeholders argue that swift action could revive transit trade volumes, which have lagged in recent years due to high costs and bureaucratic delays. For now, the GSA’s advocacy highlights a growing consensus: in an era of competitive global trade, tax policies must evolve to keep pace.
