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Ghana Slashes Port Charges: Major Tax & Levy Reforms Ahead

Port Charges in Ghana to Be Reduced: Government Plans Tax and Levy Reforms

In an effort to promote a more business-friendly atmosphere, the Ghanaian government plans to lower port fees by examining taxes, duties, and levies. The goal of this action is to increase the nation’s ports’ appeal to companies operating in the West African subregion. This statement was made by Transport Minister Joseph Bukari Nikpe, who emphasized that the program is in line with the government’s larger economic reset objective.

The minister said that the government is collaborating with important shipping industry players to reduce the rising cost of operations at Ghana’s ports during a recent visit to the Ghana Shippers’ Authority (GSA) in Accra. In order to do this, the administration intends to examine current shipping rules and streamline bureaucratic processes that have long impeded efficient port operations.

Businesses and consumers alike will benefit economically from shorter turnaround times and lower operating expenses at the ports, which will then affect the costs of goods and services nationwide.

The program is a component of President Mahama’s pledge to establish a favorable atmosphere for companies doing business in Ghana’s ports. In order to enable enterprises to function more effectively, Minister Nikpe reaffirmed that updating tax rules, duties, and levies is a top priority.

“We will take the lead in revising port laws to ensure that business operations at the ports become more streamlined, thus creating a welcoming environment for traders and shipping companies,” he stated.

The Ministry of Finance and the Transport Ministry will also work together to streamline container clearing fees. Improving trade facilitation and reducing the financial burden on companies are the ultimate objectives.

Minister Nikpe emphasized the Ghana Shippers’ Authority’s pivotal role in propelling the nation’s economic development. He proposed that the shipping and logistics sector may serve as the starting point for the government’s ambitious 24-hour Economy program.

“With strong collaboration, we can expand employment opportunities through initiatives such as ‘one job for three people.’ We are committed to working with the GSA to protect the interests of shippers,” he noted.

Following a meeting with ship owners who voiced concerns with the Ghana Shippers’ Authority Act 2024 (Act 1122), the minister paid a visit. Ship owners contend that asset management should not fall under the authority’s purview and blame overbearing bureaucratic procedures for the growing cost of conducting business in Ghanaian ports.

In order to resolve these issues, the Transport Ministry will help the GSA and ship owners have a conversation and agree on the relevant laws. In order to improve efficiency, the government is also dedicated to resolving overlapping duties among different organizations that operate at the ports.

As part of broader efforts to modernize Ghana’s shipping infrastructure, Minister Nikpe reiterated the government’s commitment to completing the Boankra Inland Port. This cargo-handling facility will serve as a key link between the Tema and Takoradi ports and the country’s interior, promoting smoother trade flows.

New Regulatory Measures for the Shipping Industry

Prof. Ransford Gyampo, the Ghana Shippers’ Authority’s acting CEO, welcomed the minister and underlined the necessity of modern shipping rules. He pointed out that in order to maintain the competitiveness of Ghana’s shipping industry, new regulatory frameworks are needed in light of technical improvements, especially containerization.

The purpose of the recently amended Act 1122 is to better regulate commercial shipping operations, such as the transportation, storage, and delivery of international trade goods by land, sea, and air. Prof. Gyampo clarified, “Our mandate used to be limited to protecting shippers’ interests, but with new complexities, a broader scope is necessary.”

With the upcoming tax and levy reductions at Ghana’s ports, businesses can expect a more efficient and cost-effective shipping environment. These reforms, coupled with infrastructure development and streamlined regulations, are set to position Ghana as a regional trade hub, enhancing economic growth and competitiveness.

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Source: Graphic Online