Economist Ebo Duncan calls for tax reform to address double taxation at ports

Economist Ebo Duncan with the University of Cape Coast (UCC) has called for significant tax reforms to address what he describes as “double taxation” at Ghana’s ports.

Speaking on ABC in the Morning, Duncan criticized the current tax structure, highlighting inefficiencies that inflate import costs and burden businesses.

“Why do you tax tax?” Duncan questioned.

“If you bring your goods, they tax the value, then they tax other charges, and finally, the VAT is applied on top of everything. This approach inflates the actual value of imports, which is wrong.”

He pointed out that taxes like the GETFund Levy and the National Health Insurance Levy (NHIL) are applied multiple times in the port taxation process.

“This is essentially the multiplication of taxes,” he emphasized.

Impact on Imports and Costs

According to Duncan, the excessive taxation at ports significantly increases the price of imports, affecting both businesses and consumers.

“Port taxes are one of the areas that must be checked because they drive up the cost of imports unnecessarily,” he stated.

Stance on E-Levy

Duncan also weighed in on discussions surrounding the potential abolition of the controversial Electronic Transfer Levy (E-Levy).

While acknowledging its limited revenue contribution, he advocated for its retention.

“But for me, E-Levy should stay,” Duncan argued.

“Though it doesn’t bring much—about 5%—it helps to bridge the tax gap.”