Scrapped 1% special import levy takes full force
Effective Friday (March 31, 2017), importers of products affected by the 1 percent special import levy will no longer pay any of such charges.
It comes on the back of the implementation of the tax cuts announced in the 2017 budget.
A statement from the Ghana Revenue Authority (GRA) therefore directed the various customs and port officials to be guided by the implementation guidelines.
The 1 percent special import levy was among the eight taxes abolished by the NPP government.
Among the reviewed taxes was the reduction in the special petroleum tax from 17.5 to 15 percent.
The news on the tax cuts was met with much appreciation by traders of spare parts at Abossey Okai, which is the spare parts hub in Accra.
Per the latest directive from the GRA, machinery and equipment for aircrafts and hydraulic turbines, water wheels and regulators with power not exceeding 10,000 megawatts, have been exempted from the 1 percent special import levy.
Also, educational, cultural or scientific materials, fishing gear, machinery, plant, apparatus and spare parts for agricultural purposes will be imported free of the import levy.
Meanwhile the excise duty on distilled and mineral water (17.5%), spirits (25%), tobacco products (17.5%), self adhesive plates (10%) are still in force.
According to the GRA, the excise duty for such products will be calculated on the Cost, Insurance and Freight (CIF) and shall be paid at the point of entry.
Nonetheless, all goods imported for the use of the President of Ghana, government of Ghana contracts, all goods imported for the official use of any diplomatic mission, are still exempted from the payment of the excise duty.