Transit goods ban by land will increase state revenue – FABAG

The Food and Beverages Association of Ghana (FABAG) has praised the government for its decision to immediately ban the land transit of nine selected products as part of efforts to strengthen border controls and protect national revenue.

The restriction covers items including Rice, Sugar, Flour, Cooking Oil, Pasta, Spaghetti, Canned Tomatoes, frozen products, textiles, and pharmaceutical goods.

In a statement issued by the Association’s Executive Chairman, John Awuni, FABAG said the policy demonstrates the government’s determination to tighten trade regulations, protect legitimate businesses and safeguard state revenue.

According to the statement, Ghana has for years suffered significant revenue losses due to the misuse of the transit trade regime.

“For a long time, Ghana has lost substantial revenue due to widespread abuse of the transit regime. Unscrupulous traders have declared goods as transit cargo destined for neighbouring countries, only to divert them illegally into the Ghanaian market through land borders without paying the required duties and taxes,” the statement noted.

FABAG believes the ban will help curb the diversion of goods and reduce smuggling activities along the country’s borders.

The Association also called on the government to consider extending the directive to cover additional products such as fruit juices and similar items.

Mr. Awuni further warned that some traders might attempt to bypass the restriction by misclassifying banned products under different categories to evade the new controls.

FABAG argued that broadening the scope of the ban would help close potential loopholes, boost government revenue and ensure fair competition for legitimate businesses operating within the market.