Seven Firms Evade Millions in Airport Luggage Wrap Taxes
An investigation by DUBAWA reveals that only one out of seven companies offering luggage wrapping services at Ghana’s airports is paying its taxes. This widespread evasion deprives the Ghana Airports Company Limited (GACL) and the Ghana Revenue Authority (GRA) of millions of cedis intended for national development. Many of these firms are reportedly unregistered with the GRA, operating without proper accounting, and issuing inaccurate receipts, significantly impacting government revenue targets.
Seven luggage wrapping companies at Ghana’s airports are failing to pay taxes. They owe the Ghana Revenue Authority (GRA) millions of cedis. This revenue is needed for national development. Only one of these seven companies is meeting its tax obligations.
These companies charge passengers for wrapping their luggage. They often issue fake or inaccurate receipts. This makes it impossible to track how much money they earn. The Ghana Airports Company Limited (GACL) has no records of wrapped bags. Many firms are not even registered with the GRA. This practice directly hurts government revenue collection efforts.
Ghana's government is already struggling to meet its revenue targets. The aviation sector in Ghana has faced financial difficulties. The Auditor General's report showed GACL losses grew to GHS 434.77 million in 2020. While global aviation contributes trillions, Ghana's airports are losing money. Uncollected royalties and unpaid debts also contribute to these losses. However, GACL did record a profit of GHS 554.23 million by the end of 2024.
Emma Esi Abbuah, a Senior Operations Officer at the GRA, confirmed the issue. She stated only one of the seven wrapping companies pays its taxes. Some companies are not registered with the GRA at all. This lack of compliance hinders the authority’s ability to collect necessary funds.
This situation means less money for public services and infrastructure. The GACL and GRA must strengthen oversight. Increased audits and enforcement are crucial to recover lost revenue. Passengers should always demand proper receipts for services rendered at the airport.
The global luggage wrapping market is valued at $500 million. It is expected to grow by 7% annually. Ghana's potential share of this market is lost due to these fraudulent activities. The lack of transparency means the true economic impact cannot be measured.
Travellers wrap luggage for security and protection. This essential service at Kotoka International Airport (KIA) is being exploited. Over two million international passengers use KIA annually. The revenue lost from these unregistered and non-compliant businesses is significant.
The DUBAWA investigation highlighted a specific incident. A researcher was charged GHS 50 for wrapping a bag. The receipt issued was inaccurate. This prompted a deeper look into the industry's practices.
The financial implications for Ghana are severe. Millions in potential tax revenue disappear into private hands. This diverts funds meant for critical government projects. The GRA must act decisively to curb this tax evasion. Stronger regulation will ensure fairness and boost national income.
The findings point to a systemic problem. Loopholes in existing regulations are being exploited. The GRA needs to collaborate with GACL to improve monitoring. This will help track all transactions related to luggage wrapping services.
Future revenue collection efforts will be undermined if this continues. The government's ability to fund its development agenda is at stake. Urgent action is required to bring these companies into compliance.
The issue affects all Ghanaians indirectly. Funds meant for public goods like schools and hospitals are reduced. It is essential to ensure all businesses contribute their fair share.
Source: StatsGH — Ghana's data-driven news platform