Accra: The Secretary General of the Ghana Federation of Labour (GFL), Abraham Koomson, has openly criticized the fumigation tax imposed on imported raw materials, labeling it as 'outright extortion' from businesses.
According to Ghana Web, Koomson expressed his concerns during Ahotor FM's Yepe Ahunu programme, highlighting that dry bulk imports such as clinker and limestone, which are crucial for cement production, arrive in sealed conditions and do not require fumigation. Despite this, companies importing these materials are still required to pay the levy at Ghana's ports.
The fumigation tax is intended to cover disinfection and pest-control services on imported goods to prevent the entry of harmful pests and contaminants into the country. However, Koomson points out that the tax is being levied even when fumigation services are not rendered, which adds unnecessary costs to local production.
Koomson warned that this levy ultimately raises the price of locally manufactured goods, reducing their competitiveness in the market. He emphasized that companies are forced to pay for services they do not receive, which contributes to higher production costs and less competitive pricing for local goods.
The labour expert also questioned the rationale behind such taxes, seeking clarity on whether the state genuinely benefits from the revenue generated. He cautioned that the policy could deter investment and hinder government initiatives aimed at fostering a 24-hour economy.
In his call to action, Koomson urged the government to reassess and eliminate taxes that place undue burdens on local industries, advocating for a more business-friendly environment to encourage investment and economic growth.