Mr. Franklin Cudjoe, Executive Director of the policy think-tank IMANI Ghana, says excessive taxes at the country’s Ports are to blame for the widespread bribery and corruption that has denied the State huge revenues over the years.
Ghanaians have expressed shock at the extent of corruption which has been exposed at the Tema Port by Ace Investigative Journalist Anas Aremeyaw Anas in his latest video titled “Enemies of the Nation,” The Dark Secrets of Tema Harbour”.
The video revealed cases of collusion with auctioneers, bribery of customs officials, and a rift between the Ghana Customs Division and the Ghana Ports and Harbours Authority over revenue collection.
It also exposed how some Government officials were aiding their cronies to evade huge taxes in the president’s name. The President, who stormed the Tema Port on Friday February 4, angrily directed the arrest of any of his appointees who peddle his name to secure influence of any kind.
As part of measures to tackle the problem, those captured taking part in the bribery will be prosecuted. Government has also announced plans to install CCTV’s at key areas of the Port to monitor daily activities. President Mills has also given his backing to the new Acting Head of CEPS to take any drastic action in tackling the problem.
But the Executive Director of IMANI Ghana has told Citi News, until Government considers a review of “atrocious taxes” imposed on importers, the canker will continue unabated.
“You have a country where if you are importing a used car you are going to be asked to pay almost 60% of the original price of the car, pay Ecowas levies, including other national levies. At the end of the day, it is as if you are buying almost a brand new car. When people are not able to pay these atrocious charges what happens is that an underground rent seeking economy develops. And that is exactly what has been playing out over the years with that huge edifice which we think can bring in so much money but it’s not bringing in that much. So why don’t you revise the taxes, make it easier for people to be able to pay, pay the Customs officials a little bit more and at least a lot of this thievery will stop. I am not saying that it will end entirely “he said.
“Unfortunately I must say this to the President, it is not necessarily about how angry you are. Yes! We were all angry when we saw the video but what must be done? Almost the same scenario has been played out since Anas started these investigations. Don’t forget those who were smuggling cocoa across the borders were motivated by profit. The idea that we need to make money. They were not motivated by some patriotic song be it the pledge or national anthem”.
“The point of the matter here is that, people respond to incentives. And in the case of Tema Harbour, it is the atrocious taxes that are imposed on imported items. That is clear. Not long ago, we were hearing that some rice importers ship in about two containers and are able to clear three or four other containers for free. Who loses? It is the State. Why should the State be losing $5, 00 million dollars when the State can do one commonsensical thing? Why don’t you reduce taxes, get about $3, 00 million, pay Customs officials probably a little extra about $1, 00 million and save $2, 00 million. Does it make more sense than losing the whole $5, 00 million? I am not saying that is the only thing that will solve the entire corrupt agency like Customs. But it has been proven beyond doubt across the World that wherever you have higher tariffs, people find other means of beating the system and at the end of the day, the State loses” he stated.
Mr. Franklin Cudjoe said the idea of ensuring tightened security through the use of sophisticated gadgets will not achieve much, since those gadgets will be handled by human beings.
He said it was wrong for successive Governments to think that development can only come about through taxation, when in actual fact the results of the taxes are not so visible.
I don’t have a problem with asking Government agencies to bring in more money. I have had interactions with Senior Customs Officials who tell me the amounts they are tasked to raise are too much. I don’t know where successive Governments get the sense that you need to rake in so much taxes and use that to develop the country. Anytime we have had cause to give successive governments opportunity to use the tax payers’ money, what do they use that for? That is why we keep on going to the multilateral institutions to beg for money when in actual fact we can make do with the little that we have”.