TAX RATE
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Tax Rate
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Formula For Calculating Customs Duties and Taxes.
CIF Value multiply by Tax Rate (eg 20%) = Import Duty
CIF Value plus Import Duty multiply by 12.5% = Import Vat
CIF Value multiply by 2.5% = National Health Insurance Levy (NHIL)
CIF Value multiply by 0.5% = Ecowas Levy
CIF Value multiply by 0.5% = Export Development And Investment Fund (EDIF)
CIF Value multiply by 1% = Processing or Examination Fee
FOB Value multiply by 0.4% = Ghana Community Network (GCNET FEE)
GCNET Fee multiply by 12.5% = Net Vat)
GCNET Fee multiply by 2.5% = NHlL
Ghana Shippers Council Fee = 5.00 Cedis (FIXED)
Import Duty plus Import Vat Divided by 48 = Interest Charge
Interest charged is applicable after 4 days of arrival.L
Let’s see this practical illustration:
Mr. A. imported Rice Cookers which attracts 20% import tax into the country, he has an Invoice value broken down as follows (already converted into Gh Cedis): FOB 28,000.00, insurance 400 and freight 1,600.00. Total CIF value satisfy by customs, a division of Ghana Revenue Authority. = GHC 30,000.00
Based on the CIF value, please, advice Mr. A how much he is suppose to pay as customs duty:
Import duty (20%) on CIF 30,000 X 20% = 6,000.00
Import VAT (12.5%) on CIF 30,000.00 + import duty 6,000.00 =36,000.00 X 12.5% vat rate =4,500.00
NHIL (2.5%) on CIF 30,000.00 X 2.5% =750.00
Ecowas levy( 0.5%) on CIF 30,000.00 X 0.5% =150.00
Edif levy (0.5%) on CIF 30,000.00 X 0.5% =150.00
DIC processing fee (1%) on CIF 30,000.00 X 1% = 300.00
GCNET fee (0.4%) on fob 28,000.00 X 0.4% =112.00
GCNET VAT (12.5%) on GCNET fee 112 X 12.5% =14.00
GCNET NHIL (2.5%) on GCNET fee 112 X 2.5% = 2.80
Interest charge : import duty + import vat = 10,500 divided by 48 = 218.75
Shippers council fee = 5.00
IDF charge = 5.00
Total customs duty payable = GHC 12,207.55
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