AGI calls for ‘selective’ application of benchmark discount policy
The Association of Ghana Industries (AGI) is calling for a selective application of the benchmark values discount policy instituted by government in 2019.
The call by the AGI is indicative of its dissatisfaction over the reduction in the benchmark values rather than its total removal.
Speaking at the Ghana-Barbados Business Roundtable, President of the AGI, Humphrey Darke, posited that the reduction in the benchmark values still makes local industries uncompetitive.
According to him, local industries will only become competitive if the benchmark values are completely done away with.
“What we are saying is that as it stands now, it is still not competitive to produce locally, it is till attractive to import than produce in locally.
“So we want government to consider as a matter of urgency, remove the benchmark value entirely on those goods that are produced in Ghana, for those not produced in Ghana like raw materials that we don’t have, the benchmark discount can still be applied to them.
“So in essence we are calling for the selective application of the policy to ensure that it reflects the aspirations and industrialization plan of the government.
“Because, we can’t have an industrialization plan and at the same time promote importation of products,” he stated.
The Association of Ghana Industries (AGI) since the announcement of the new benchmark values, has expressed dissatisfaction with the reduction of the 50% benchmark discount value to 30% for general goods and 10% for vehicles.
The Association has noted that the review of the benchmark policy will not proffer solutions to the concerns of local manufacturers.
It revealed this in a press release following the government’s directive to reduce the benchmark value policy on general goods and import discount on vehicles from 50% to 30% and 30% to 10% respectively.
‘’Our attention has been drawn to a reduction of the 50% benchmark discount value to 30% for general goods and 10% for vehicles while consultation was still in progress. This revision by Government does not offer solution or address the concerns of local manufacturers. While we acknowledge efforts by Government to address this distortion, we are very dissatisfied with this review,’’ the AGI said.
Government has reduced the controversial benchmark value policy on general goods and import discount on vehicles by 20 percentage points.
The reduction comes after a consensus between the Finance Minister, Ken Ofori-Atta, and the leadership of the Ghana Union of Traders Association (GUTA), Association of Ghana Industries (AGI), Importers and Exporters Association, Ghana Institute of Freight Forwarders [GIFF] and the Ghana Revenue Authority.
Government introduced the benchmark value policy discount in 2019, which is in accordance with the World Customs Organisation policy of regular review of valuation database.
