Transit traders appeal for removal of taxes on shipments to landlocked countries

The President of Transit Shippers of Landlocked Countries, Ibrahim Souley, has appealed to the government to remove Value Added Tax (VAT), COVID-19 and Education levies on transit transactions in Ghana.

This appeal, according to him, is to further enhance the efficiency of transit operations.

Mr Souley made the appeal at a meeting between the Ghana Shippers' Authority (GSA) and the Shippers' Councils of Burkina Faso, Mali and Niger in Accra.

The meeting addressed issues affecting international and transit trade and focused on reviewing the Memoranda of Understanding (MoUs) between the GSA and the three Shippers' Councils.

The meeting was also aimed at managing challenges faced by transit traders.

The Chief Executive Officer of GSA, Kwesi Baffour Sarpong, supported Souley's appeal, adding that “transit shipments should be exempted from taxation by international convention as imposing levies goes against global trade practices.”

Mr Sarpong assured that the GSA would keep pursuing tangible results to ensure transit shipments avoid unnecessary taxation.

Other issues discussed included the rising sale of transit goods under the Uncleared Cargo List (UCL), police and customs checkpoints along transit corridors, extortion and the need for standardised exchange rates by shipping lines.

Regarding checkpoints and extortion, Mr Sarpong stated the GSA's collaboration with the Police, citing the recent directive from the Inspector General of Police, George Akufo Dampare, for the cessation of inspections on transit trucks.

The meeting stressed the mutual benefits of transit trade for Ghana and its landlocked neighbours. It emphasised the need for reciprocal commitments and joint efforts for smoother and more efficient trade operations.

To resolve issues quickly, the GSA proposed reconstituting bilateral Technical Committees to meet regularly, address concerns and facilitate seamless transit trade.