AGI rejects 20% reduction in benchmark value
The Association of Ghana Industries (AGI) has rejected the reduction of the benchmark value policy on general goods from 50% to 30% as well as the import discount on vehicles from 30% to 10%.
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.
Reports indicate that, the government may implement the new adjustments starting March 1, 2022, as preparations are underway for a final announcement of the said day.
Already, the Ghana Union of Traders Association (GUTA), has indicated that its first engagement with government and other stakeholders since the suspension of the reversal of the benchmark values was largely successful.
However, the Greater Accra Regional Chairman of the AGI, Mr Tsonam Cleanse Akpeloo, is questioning the new revision by government, adding that the AGI was not engaged on the matter.
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‘’We have been calling for the total reversal of the benchmark value because per the calculations, that is the only way we can begin to get the economy back on track. You realize in recent times that the cedi has been depreciating against the dollar and the reasons are simple because your incentivising your importation of finished products.
“So now its more lucrative to import and its making the local economy suffer because it is only where you expand your local production and actually even export that will improve your currency value and so on. Government should consider totally reversing the benchmark value, that way, all of us in the country will begin to be excited and be happy in building the nation Ghana together,’’ he stated.
Government reduces 50% benchmark value to 30%
Government has reduced the controversial benchmark value policy on general goods and import discount on vehicles from 50% to 30% and 30% to 10% respectively.
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.
The implementation of the reversal of the benchmark value policy was later suspended by the Ghana Revenue Authority (GRA) until further notice.
In a statement issued on Thursday, 13th January, 2022, the authority said the decision was to enable further engagements with all the relevant stakeholders.
Meanwhile, the Ghana Union of Traders Association (GUTA), indicated that its first engagement with government and other stakeholders since the suspension of the reversal of the benchmark values was largely successful.
According to the President of GUTA, Dr. Joseph Obeng, in order to reach a win-win situation for both the association and other member associations including the Association of Ghana Industries, the trading community reached a compromise for a reduction in the discount value.
“The meeting has been largely successful. We are grateful to the Deputy Trade Minister in charge of Micro, Small and Medium Enterprises, Oheneba Dokua Asiamah-Adjei, for sitting with us and listening to our concerns regarding the benchmark values. It is clear our broader stakeholder engagement will result in a compromise of a sort that neutralises the entrenched positions of all business and trading associations in Ghana,” he pointed out.
