Business News of Tuesday, 25 September 2007

Source: GNA

ECOWAS Committee is working on tax regime

Aflao, Sept 25, GNA - An ECOWAS committee of tax experts is working out a common customs duty and tax regime for use in all member countries in place of the individual national duty and tax administration. This is to eliminate the cumbersome tax and duty regimes identified as partly responsible for the drawback in inter-regional trade integration and overall economic development.

Miss Veronica Saddah, Assistant Commissioner at the CEPS Headquarters, said this at a tax education forum organized by the service to sensitise the public on their tax obligations and against negative practices such as smuggling.

It was under the theme "Compliance: A Prerequisite for Effective Mobilization of Customs Duties and Taxes". Miss Saddah said though some taxes seemed to be higher in Ghana, Ghana also had others that were lower than could be found in other countries in the sub-region.

She explained that different factors such as revenue, need to stop smuggling and a protective measure for local industries were considered by every country in deciding its tax regime. Miss Saddah urged the business community to remain tax complaint and help stop smuggling that is rampant along the eastern. Mr Emmanuel Impraim, Assistant Commissioner in charge of the Aflao Sector, appealed to the public to play complimentary roles in the interest of the country as far as tax collection was concerned. "The need for our stakeholders, including the traditional rulers, to collaborate and play their complimentary roles in the interest of national development has become more paramount," he said. Mr Impraim said the Aflao Sector has been taxed to collect 652.92 billion cedis or GHc65.29. Several reforms including the customs law, regulations and operational procedures, he said, were being modernized in conformity with international standards to facilitate business and minimize corruption. Miss Annie Anipa, Assistant Commissioner in charge of Public Relations, said CEPS from 2001 to August has collected 58.67 trillion cedis in revenue.

Mr Tsevi Agbenyenu, Local Ghana Freight Forwarders (GIFF) Chairman, said the association had rules guiding the activities of its members. He said members risked being banned and face other penalties if found flouting operational procedures, including under-declaration of goods.

Mr Isaac Abbey, a Chief Collector at the Aflao Sector, expressed regret at the rampant abuse of the temporary importation regime that enables people entering the country on short visits not to pay duties on certain items including vehicle for up to three months. He said the nation was losing so much in revenue because Ghanaians, including state officials at Aflao, acquired vehicles from Togo and fraudulently obtained temporary importation facility only to get the vehicles ''lost in the system.''