For many Ghanaians, buying a car has become an increasingly expensive decision, whether brand new or used. While global supply chain shocks, currency depreciation, and inflation are often cited as the main culprits, a lesser-known but equally significant factor lies in the long list of taxes, fees, and statutory charges imposed at Ghana’s ports.
A typical Bill of Entry for a vehicle import reveals more than 20 different taxes, levies, and charges, many of which are applied regardless of the age, type, or value of the vehicle. Even when some items show “0.00” during exemptions or special waivers, they remain mandatory cost components for most importers.
Collectively, these charges make Ghana one of the most expensive destinations to clear vehicles in West Africa.
Here is a breakdown of these charges and why stakeholders say the cumulative effect is prohibitive.
1. The Core Taxes That Drive Up Costs
A number of major taxes form the backbone of Ghana’s vehicle import regime:
Import Duty (Code 01)
This is a major component of clearance costs, calculated on the CIF value of the vehicle. Rates vary by vehicle type and capacity, but they significantly raise the base clearing cost.
Import VAT (02) and Import NHIL (47)
The standard VAT and National Health Insurance Levy charged on imports. When combined with other VAT-related charges, importers complain that VAT is applied multiple times in the clearance chain.
ECOWAS Levy (06)
A community levy paid on imports into ECOWAS member countries. While relatively small, it adds to the cumulative expense.
Special Import Levy – SIL (78)
A 2% levy originally introduced as a temporary measure but now part of the port tax ecosystem.
1% Withholding Tax on Imports (56)
Usually applied to registered businesses, this reduces immediate cash flow and adds to upfront port costs.
2. Administrative and Agency Fees
These charges are attached to specific regulatory or public service agencies:
Processing Fee (05)
A general administrative charge paid on every import declaration.
Vehicle Examination Fee (31)
Charged for physical inspection of vehicles.
Vehicle Certification Fee (16)
Paid when DVLA certifies the imported vehicle prior to registration.
Ghana Shippers Authority SNF Fee (45)
A statutory fee supporting the operations and regulatory work of the Shippers Authority.
MoTI e-IDF Fee (72)
The electronic import declaration fee mandated by the Ministry of Trade and Industry.
GHS Disinfection Fee (63)
Introduced during the peak of COVID-19, this fee initially covered disinfection of cargo. Importers argue that the persistence of such charges beyond the emergency period is unnecessary.
3. Network and System Charges
These technology-related fees have become some of the most controversial:
Network Charge (32)
Network Charge VAT (33)
Network Charge NHIL (48)
Network Charge GETFund Levy (89)
COVID-19 Network Charge (39)
The “network charge” cluster relates to fees imposed for the use of the Integrated Customs Management System (ICUMS). Importers argue that applying VAT, NHIL, GETFund, and other levies on top of a technology service fee results in cascading taxes, effectively taxing the same item multiple times.
4. Social and Public Policy Levies
These levies are intended to fund national development initiatives:
GETFund Import Levy (88)
EXIM Bank Levy (87)
African Union Import Levy (98)
COVID-19 Health Recovery Levy (99)
Upfront VAT for Unregistered Importers (101)
Individually, these may not be large percentages, but together they greatly inflate the overall cost of bringing a vehicle into Ghana.
Why These Charges Are Seen as Prohibitive
1. Cumulative Effect
While some levies appear minor on their own, the combined effect is substantial. A vehicle valued at $10,000 can attract total clearing costs that approach or even exceed the value of the vehicle, depending on engine capacity and age.
2. Cascading Taxes
VAT-related charges are applied several times, on the value of the vehicle, on network fees, and sometimes on other levies, creating a compounded tax effect.
3. Lack of Harmonisation Across Agencies
Multiple government agencies impose independent fees, creating redundancy and inefficiencies.
4. High Port Charges Reduce Competitiveness
Ghana’s ports are increasingly seen as less competitive compared with neighbouring countries.
Comparing Ghana’s Port Charges With Other West African Countries
Nigeria – More Competitive Despite Its Challenges
Despite Nigeria’s economic difficulties, clearing a used vehicle at Lagos or Port Harcourt often costs significantly less than in Ghana. Nigeria also applies fewer digital-system charges, and the country has aggressively reviewed auto import taxes to attract more port volumes.
Togo (Lomé) – The Region’s Transit Leader
Lomé Port is widely considered the most competitive in West Africa. This is due to lower automobile import duties, fewer administrative levies, faster clearance processes, heavy reliance on transit cargo, especially to landlocked neighbours.
Many Ghanaian importers take advantage of this by routing vehicles through Lomé and then transporting them into Ghana. Ironically, this results in Ghana losing significant revenue to Togo.
Benin (Cotonou) – A Popular Destination for Auto Imports
Benin has positioned Cotonou as a “vehicle import hub” by: reducing import duties, streamlining port processes, removing redundant fees.
As a result, many West African auto dealers source and clear vehicles through Cotonou, not Ghana.
Industry Concerns: Ghana Is Losing Out
Stakeholders in Ghana’s automobile import ecosystem consistently argue that:
The long list of taxes and levies discourages vehicle importation.
Port costs are pushing importers to use neighbouring countries.
Government revenue is indirectly reduced because overly high charges divert business away from Ghana.
The average Ghanaian pays more for used cars due to high port charges.
Local auto dealers warn that the market continues to shrink as vehicles become unaffordable for many consumers.
The Way Forward
The prices of vehicles on the local market are significantly impacted by two key factors which are the exchange rate and port-related import duties. For years, a weakening cedi has led to higher costs for both importers and buyers.
Due to this, there is already growing pressure from customers who are demanding price reductions in line with the cedi’s appreciation.
According to vehicle dealers, current retail prices remain high because the cars were imported when the exchange rate was less favourable.
Second Hand Car Dealers Association argue that although they expect that future imports will be more affordable, due to the appreciation, maintaining the current import duty regime will be ineffective.
Industry players are calling for:
1. A comprehensive review of all automobile import levies
2. Harmonisation of agency charges
3. Reduction of cascading VAT on service fees
4. Competitive benchmarking across West African ports
5. A shift from revenue-maximisation to trade-facilitation
Until these reforms happen, clearing a car in Ghana will remain one of the costliest in the subregion and consumers will continue to bear the burden.
Source: Sheba Araba Bennin/Channel One Research Desk
