NDC calls for collective action against import restriction L.I.

The National Democratic Congress (NDC) Minority in Parliament has called on the media, the clergy, trade unions, civil society organisations (CSOs) and all well-meaning Ghanaians to support the fight against the import restrictions regulations being imposed by the government. 

In their view, the proposed legislative instrument (L.I) on Export and Imports (Restrictions on the Importation of Selected Strategic Products Regulations) was not only counter-productive but a recipe for corruption.

The Minority Leader in Parliament, Dr Cassiel Ato Forson, stated this at the "Moment of Truth Series" in Accra today (December 6).

"The NDC minority has fought enough in Parliament and if you do not join us, we cannot win the fight. It is the battle for the people of Ghana.

We call on other stakeholders to demonstrate and shout hard for the President to hear that the policy is in bad taste and will not help the country," he stressed.

Dr Forson added that if urgent mass action was not taken as a matter of necessity, the L.I would be laid in Parliament "and the consequences will be dire for all of us as Ghanaians."

"The truth is that if we allow them to lay it before Parliament, it will become a law in 21 working days and when that happens, the law requires two-thirds majority in Parliament to overturn it.

NDC has only 137 members and that is short of the two-thirds majority to reverse it,” he said.

Context

The Export and Import L.I seeks to give the Minister of Trade and Industry the sole prerogative and unfettered power to grant license to any person desirous of importing 22 items into the country.

The essential items on the list are rice; poultry; guts, bladders, stomach and intestines of animals; frozen cuts and offal of fowl; animal, vegetable, coconut and palm oil; margarine; fruit juice; soft drinks; mineral water; ceramic tiles; and corrugated paper and paper board.

The rest are mosquito coil and insecticides, soaps and detergents, motor cars, iron and steel, diaper, polymers, fish, sugar, clothing and apparel as well as biscuits, canned tomatoes and aluminium products.
 

Issues of concern

Dr Forson stated that as a matter of principle, the NDC was not against any legal regime or policy that sought to protect indigenous businesses by regulating imports.

"What we are vehemently against is a law that confers discretionary power on a single individual, in this case, the Minister of Trade and Industry, to issue import licenses and to restrict the quantity of certain imports into the country without any checks and balances," he stressed.

The Minority Leader also said the proposed regulations would put additional burden on businesses because it sought to impose both an application and a license renewal fee on prospective importers. 

Alternative

Dr Forson said where there was adequate data to show that the country had domestic capacity to produce a particular product, or where the consumption of a product had been proven to be injurious to public health, the government could place a ban on the importation of such product.

He added that one of the viable alternatives to the proposed import restrictions was to introduce a transparent quota system for the importation of certain products.

"A quota system requires a prospective importer of a particular product to first show proof of utilising existing local capacity by procuring a certain percentage of his intended import volume locally," he said.

He said another mechanism that could be used to regulate imports with the aim of protecting indigenous industries was the importation of tariff and non-tariff measures on certain products to encourage the patronage and consumption of locally produced commodities.

New taxes

Dr Forson said the government intended to introduce a new raft of tax measures in the 2024 budget which would worsen the plight of Ghanaians.

He said the taxes included Value Added Tax (VAT) on non-life insurance, VAT on domestic air travels, VAT on domestic transportation of passengers by road, rail and water, increase of stamp duty rates across board as well as five per cent VAT flat rate on residential and commercial real estate.

The Minority Leader also said there was a new Excise Duty Amendment Bill that would increase excise duty on cider beer from 20 per cent to 47.5 per cent of ex-factory price, 20 per cent excise duty on Akpeteshie and GH₵100 per tonne of carbon dioxide emissions by industries.

The bill, he said, would also introduce an excise duty of GH₵100 per annum for all petrol and diesel vehicles, including all internal combustion engines.