AGI warns of more job losses over implementation of benchmark value policy
President of the Association of Ghana Industries, Dr. Humphrey Ayim Darke, is warning of more job losses over the implementation of the benchmark value policy on imports.
Government re-introduced the policy after it was suspended due to some concerns. The policy seeks to reduce the cost of importing some goods into the country, however, the AGI insist the policy is taking a toll on them.
“A number of factories had to lay off workers just to reshape and restructure the activities because the benchmark value was negative. I think that the final engagement with government on this matter, government proposed the review as it is now, as a temporary review with the promise that by the close of year, hopefully they will review this to its original status quo, we hope that works according plan. That was the last communication I had. Well the combination of activities and this inflationary related effect on our various activities now worsens the plight,” disclosed Dr Humphrey Darke speaking in an interview.
Meanwhile, the Ghana Revenue Authority (GRA) has said the new benchmark values will help it [GRA] exceed its revenue target for 2022.
According to the tax authority, the 20% reduction in the benchmark values for general goods and vehicles imports will not hinder the attainment of the GHS 80.3 billion revenue target for this year.
According to Dr. Martin Yamborigya, the Assistant Commissioner at the large taxpayer office of the GRA, the reduction will rather result in an increase in the authority’s revenue target.
“It wouldn’t affect, it would rather increase the revenue target, in the sense that the value based on which your duties would be paid, because of the reduction, would rather go up a little,” he said in an interview on Wednesday, March 16, 2022.
He, however, acknowledged the fact that the slight increase in duties may reduce the number of imports into the country.
“So we are expecting that we should be able to get more revenue than its cancellation. The only thing that people say is, maybe when the duties are high, people may not import,” he added.
Government announced in 2019 that benchmark values for some general goods would be reduced by 50% and for vehicles by 30%.
This was to stimulate traffic at the port and therefore enhance government revenue.
Not too long ago, the government decided to repeal the benchmark values but was met with stiff opposition from trade unions such as the Ghana Union of Traders Associations (GUTA).
Due to the kickback from the trade unions, the policy was rather reduced by 20% to 30% and 10% for selected goods and vehicles respectively.
The new benchmark values took effect on March 1, 2022
