The United States Department of Agriculture (USDA), has indicated in it second quarter foreign agricultural service report that government plans to significantly increase import taxes on frozen seafood by 1,573 percent.

The current tax rate of GH¢15 per metric tonne will rise to approximately GH¢251 per metric tonne. The USDA's second quarter foreign agricultural service report states that the tax will be paid in US dollars, which are currently in short supply. This tax hike could lead to a reduction in fish imports and a decrease in fish supplies on the local market.

In addition to the tax increase, the elimination of the benchmark value discount policy and an increase in Value Added Tax (VAT) are cited as potential challenges that could impact seafood imports in Ghana.

These tax measures are already discouraging importers, especially given the current economic situation, making business in the major port of Tema less attractive. Consequently, vessels are opting to unload their cargo in neighboring countries like Togo and Cote d'Ivoire, where they can avoid paying the import taxes.

Despite these tax measures, the seafood industry remains attractive to importers due to the rapid growth of Ghana's hospitality industry, particularly the food services sub-sector. Ghana relies heavily on seafood imports, as it is a net importer of fish and seafood products. In 2022, the country imported approximately US$145 million worth of seafood, a decrease of 13 percent compared to 2021.

Mauritania was the top supplier of seafood to Ghana in 2022, followed by China and Morocco. Other significant seafood supplying countries include the Faroe Islands, Spain, Norway, South Korea, the Netherlands, Angola, and Singapore.

The United States ranked 13th as a seafood supplier to Ghana, with a value of US$4.2 million in 2022, an increase of 42 percent compared to 2021. Mackerel, sardines, and whiting/hake are among the most commonly imported fish species in Ghana.

Seafood plays a vital role in Ghanaian cuisine, accounting for 60 percent of animal protein intake and having one of the highest per capita consumption rates of fish in Africa, estimated at 26 kilograms per year.

While U.S. seafood sales to Ghana have recently experienced growth, the sustained export of seafood from the U.S. is at risk due to the substantial tax increase on frozen seafood. However, a previous USDA report highlighted that Ghana's seafood market presents a long-term opportunity for U.S. suppliers if efforts are made to prioritize and enhance domestic production.