{"id":2980,"date":"2024-08-20T19:26:01","date_gmt":"2024-08-20T19:26:01","guid":{"rendered":"https:\/\/sbmediaonline.com\/?p=2980"},"modified":"2024-08-20T19:26:01","modified_gmt":"2024-08-20T19:26:01","slug":"oppong-nkrumah-import-duties-to-be-cedi-based-simplified-with-flat-rate-from-2025","status":"publish","type":"post","link":"https:\/\/sbmediaonline.com\/?p=2980","title":{"rendered":"Oppong Nkrumah: Import duties to be cedi-based, simplified with flat rate from 2025″"},"content":{"rendered":"\n
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The Vice Chair of the New Patriotic Party (NPP)\u2019s Manifesto Committee, Kojo Oppong Nkrumah, has announced that starting in 2025, import duties will no longer be referenced in dollars but will instead be based on the cedi with a predictable, flat rate.<\/p>\n\n\n\n

Speaking on Joy News\u2019 PM Express on Monday, he stated that the incoming government under Dr Mahamudu Bawumia intends to simplify the current tax system by moving away from dollar-referenced duties.<\/p>\n\n\n\n

\u201cBecause it\u2019s dollar-referenced, it fluctuates. That\u2019s what we are moving away from\u2014being able to give you a simple, basic cedi-based and flat rate,\u201d he explained.<\/p>\n\n\n\n

The Housing Minister highlighted the issues businesses face with the current system, noting that the lack of clarity and predictability often leads to tax evasion.<\/p>\n\n\n\n

\u201cOne of the problems with taxation is when people can\u2019t find some clarity and predictability, and therefore resort to a lot more tax evasion, instead of even at best, tax avoidance,\u201d he said.<\/p>\n\n\n\n

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During the NPP\u2019s engagement with the business community, they found that the current taxation system has become more cumbersome due to recent modifications meant to address economic challenges.<\/p>\n\n\n\n

To counter this, Oppong Nkrumah shared the NPP\u2019s proposed changes: \u201cOur leader is promising three things. Number one, import duties will be cedi-based and flat rate, so you have predictability.<\/p>\n\n\n\n

\u201cSo if you\u2019re bringing in a container of spare parts, you know that a container of spare parts is going to require a duty of GH\u00a250,000 beforehand.\u201d<\/p>\n\n\n\n

He further explained that the new system would eliminate the uncertainty businesses face under the current method, which is calculated based on CIF dollar value.<\/p>\n\n\n\n

\u201cToday, the system is that it will come in at CIF dollar value, and then they will do the calculations on it. So sometimes you are not sure, and there\u2019s very limited predictability,\u201d Oppong Nkrumah noted.<\/p>\n\n\n\n

The Ofoase Ayeribi MP pointed out that neighbouring Togo, which uses the CFA franc, enjoys more stability and lower rates due to the predictability of their currency.<\/p>\n\n\n\n