Wednesday, 29 October

Ghana loses hundreds of millions of cedis every week due to unmonitored smuggling activities-FABAG

Business
Dr Casiel Ato Forson

The Food and Beverages Association of Ghana (FABAG), in a press statement, has called on the government to, as a matter of urgency, address what they describe as “escalating crisis of smuggling across Ghana’s borders”.

According to the Association, essential commodities such as rice, cooking oil, sugar, alcoholic beverages, and textiles are being extensively smuggled into the country, which deprives the government of vital tax revenue. 

“This illicit activity has reached alarming levels, causing the nation to lose billions of cedis in revenue each month.

While legitimate businesses grapple with rising operational costs and heavy taxation, smugglers are operating freely, flooding the market with untaxed and often substandard goods,” the statement said.

The Association has urged the government and stakeholders to take relevant action. 

“We urgently appeal to the government agencies, particularly the Customs Division of the Ghana Revenue Authority, the Ministry of Trade and Industry, and the National Security agencies to intensify enforcement efforts, deploy advanced surveillance technology, and foster stronger collaboration with border communities”, the statement added. 

FABAG estimates that Ghana loses hundreds of millions of cedis every week due to unmonitored smuggling activities at both official and unofficial entry points. 

“This massive revenue drain threatens the stability of our economy, diminishes investor confidence, erodes the Ghanaian cedi, and jeopardises employment within our manufacturing and distribution sectors,” the Association cautioned.

FABAG also urged the Ministry of Finance to thoroughly review the current import tax regime in the 2026 budget

Source: Classfmonline.com/ Abigail Bodo