AGI urges government not to suspend implementation of reversal of benchmark values
Following the commencement of the implementation of the reversal of the benchmark values by the GRA which kickstarts today, January 4, 2022, the Association of Ghana Industries (AGI) has urged government not to heed calls by some stakeholders to suspend the implementation of the policy for further consultations.
Executive Director of the AGI, Seth Twum Akwaboah, speaking on the subject, said government should go ahead with the implementation of the policy while it holds consultations aside.
“I am fully against it, government should not suspend implementation, rather consultation should continue but at the same time let’s implement it, let’s see what happens along the line.
“The fixed product that we have challenges in terms of output, let’s see how we can quickly close those capacities and ensure that local capacity is institutive,” he noted.
He explained that the suspension of the benchmark values would imply that local industries would be subverted.
According to him, with the Africa Continental Free Trade in place, local industries capacity must be boosted to prevent imported goods from overtaking the local market.
“If you don’t build your local capacity as you are allowing import to come in duty-free, it will wipe out all your market but if you boost local capacity now, then you can also export to enter other markets so if you suspend it means that you are killing local industry forever and it will never work so let’s continue the consultation but the implementation star,“ he expressed.
Read: Benchmark Values: Implementation of policy reversal takes effect today
Meanwhile, Executive Secretary of the Importers and Exporters Association of Ghana, Samson Aasaki Awingobit, believes that the implementation of the policy is coming at an unfortunate time.
“We think that it is not the right time. Look at the economic situation of ordinary Ghanaians, their financial status viz-a-viz they say the government is the largest employer. I strongly believe that it is not the right time looking at the cost of living in the country now,” he stated.
Starting today, January 4, 2022, the Customs Division of the Ghana Revenue Authority, will begin the implementation of government’s policy directive on the reversal of the reduction of values on the import of 43 selected items.
The items to be affected include the home delivery value of vehicles, goods on which benchmark values are applied and all other goods.
Government in 2019, introduced the benchmark policy in accordance with the world customs organization’s policy or regular review of valuation data base. Under the policy, certain commodities were benchmarked to the prevailing world prices as a risk management tool to reflect the true market dynamics of these commodities.
It also took into consideration, factors such as protection of health, the environment and security as well as protection of local industries.
