…Diplomats Cite Vienna Convention in Challenge to Ghana’s FX Levy
The decision by the Bank of Ghana (BoG) to impose a 5 percent charge on foreign exchange withdrawals has reportedly triggered quiet discontent among members of the diplomatic community in Ghana.
Information from unimpeachable sources indicates that foreign diplomats operating in Ghana are being subjected to a special 5 percent levy on withdrawals made from their foreign currency accounts. The charge applies to accounts funded through transfers or cheque deposits, following new guidelines recently issued by the Bank of Ghana to commercial banks.
However, the development has raised serious concerns within diplomatic circles, as diplomats are generally exempt from direct taxes under the Vienna Convention on Diplomatic Relations. Critics argue that the levy effectively amounts to a tax, which diplomats are not required to pay under international law.
Under Article 34 of the Vienna Convention, diplomatic agents are exempt from all national, regional, and municipal dues and taxes, with limited exceptions such as indirect taxes included in the price of goods and services, or charges levied for specific services rendered. Diplomatic missions are also exempt from customs duties under Article 36, while family members of diplomats enjoy similar protections under Article 37.
Diplomatic sources warn that Ghana’s enforcement of the 5 percent withdrawal charge could be interpreted as a violation of these provisions. There are growing concerns that the move may provoke reciprocal actions against Ghanaian diplomats posted abroad, potentially straining diplomatic relations at a time when adherence to international conventions is critical.
The Vienna Convention further states that diplomatic agents shall be exempt from personal services, public service obligations, and military contributions. It also guarantees tax exemptions on official and personal imports, as well as protections for family members, administrative staff, and service staff of diplomatic missions.
While the Bank of Ghana maintains that the charge is a regulatory fee linked to foreign exchange transactions, affected diplomats argue that the policy contradicts the spirit and letter of the Vienna Convention.
As discussions continue, observers are urging the Government of Ghana and the Bank of Ghana to clarify the policy and engage diplomatically to avoid unintended international repercussions.
