Benchmark Reduction Key to Curbing Smuggling Surge — FBAG Secretary Tells DM Media
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Accra, Ghana — The General Secretary of the Food and Beverages Association of Ghana, Samuel Aggrey, has called for the immediate reduction in import benchmark values, to help in the fight against smuggling of goods into the country.
Speaking exclusively to DM Media, Mr. Aggrey said the benchmark policy, which directly influences the calculation of import duties, has created a pricing imbalance that encourages traders to divert goods through neighboring ports.
“Depending on what you are importing, but then you get no less than 40, 45, or 65 percent, depending on what commodity that you are bringing in, and as for raw materials, yes, and then agri components also, it's also down, but the finished product that we bring in has a high cost of importation duties, which is making it very unattractive” he stated.
“I want to see the benchmark value reduced to almost about 50 percent. When we do that, straight away as the city has gained strength, you will see the cost of producing in the markets coming down. It will not be fair to say that because when it comes down, industry will suffer.” he added.
He added that Ghana’s high tax regime compounded by levies on freight, insurance, and logistics is worsening the competitiveness of local businesses and fueling informal trade networks. “The taxes are killing the system,” “Let the local manufacturers produce, have lower taxes, lower utilities, and then the imports can also be at least leveraged in a way that we don't lose so much revenue. Because once the duties come down, the compliance level will be very high.” Aggrey lamented.
It's only when we wait until November for them to come up with whatever they say there's inequity we need to do. If we need to give them places on whatever they put on the table, we will do that.
And then those areas that we see that they are porous and we don't have much personnel there, they increase their personnel over there to ensure that the police or these people, then within the catchment areas where these boats come in, because when they are driving down to Accra, they come through only one route. So when they come, they should check them the appropriate fares, the appropriate duties that they are supposed to pay. And then even sometimes when you cut them, don't even prefer their duties, impound those boats and confiscate them for the needy or use it for charity work.
He further proposed stronger collaboration between the Ghana Revenue Authority, Customs, and the FBAG, alongside investment in digital border tracking systems to detect illegal movements.
“The conversation shouldn’t only be about policing smugglers,” he noted. “It should also be about creating an environment where compliance makes sense economically.”
Trade experts speaking to DM Media say that if implemented, the benchmark review expected to be addressed in the 2026 National Budget could significantly reduce cross-border leakages and strengthen domestic production incentives.
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