The total reversal of the discretionary discount on the free on board (FOB) value of products and the home delivery value (HDV) of automobiles, which will take effect on January 1, 2023, has been welcomed by the Office of the Special Prosecutor (OSP).
Although the OSP expressed satisfaction with the new rule, it stressed that "the many investigations the OSP initiated at the Customs Division would continue go regardless and the Office will monitor the execution of the new rule."
All sector commanders of the Customs Division have been reminded by the Ghana Revenue Authority that the complete reversal of the discount on the Free on Board (FOB) value of general goods and the home delivery value (HDV) of vehicles will take effect on January 1, 2023, and they should therefore ensure full compliance.
The move, according to the GRA, is in line with the government's 2023 Budget Statement and Economic Policy, which aims to increase revenue as well as increase local productive capacity. It also introduces policies for the protection and incubation of newly formed domestic industries to enable them to make the Ghanaian goods produced competitive for both local consumption and export.
According to the new policy, import value reductions for automobiles have been reduced from the previous 30% to 10%.
Discounts on import values for all other items will be 30 percent rather than the current 50 percent. The effective date was stated as January 1, 2023 in a note from the Commissioner General of the GRA, Rev. Dr. Ammishadai Owusu Amoah, who also instructed Customs personnel to guarantee "strict compliance to avert any possible losses of revenue."
However, there is a transitional arrangement for the provision of a storage-free time from the incoming means of conveyance to proceed through clearance without being impacted by the reversal policy for consignments released on December 31, 2022.
Additionally, the reversal policy must not apply to any pre-arrival declarations that have been completed and tax paid, even if the items have not arrived before January 1, 2023.
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