Accra: The Food and Beverages Association of Ghana (FABAG) has praised the government for implementing an immediate ban on the land transit of nine specific products. This measure is designed to tighten border controls, reduce revenue leaks, and protect government income.
According to Ghana Web, the products affected by this ban include rice, sugar, flour, cooking oil, pasta and spaghetti, canned tomatoes, frozen products, textiles, and pharmaceutical products. The Executive Chairman of FABAG, John Awuni, stated that this policy demonstrates the government's dedication to reinforcing trade regulations, protecting legitimate businesses, and securing national revenue.
The statement from FABAG highlighted the longstanding issue of revenue loss due to the misuse of the transit regime, where traders would falsely declare goods as transit cargo destined for neighboring countries, only to illegally divert them into the Ghanaian market without paying the necessary duties and taxes. FABAG believes that the ban will greatly reduce the risk of such diversion and smuggling.
Furthermore, the Association has urged the government to consider extending the ban to include additional goods like fruit juices and similar products. Awuni warned that some traders might try to bypass the ban by misclassifying restricted items under other categories to avoid the new regulations.
FABAG argues that broadening the scope of this directive would help close potential loopholes, boost government revenue, and ensure fair competition in the market.