Benchmark Value: GUTA dismiss claims association failed to reduce price of goods
President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has dismissed claims that members of the association failed to reduce prices of goods when the benchmark policy was introduced.
He noted that, some key factors such as the exchange rate and port-related issues made it impossible for the prices to be reduced so the claims were unfair to the association.
His comments come after a Former Municipal Chief Executive (MCE) of Akuapem North Dennis Miracles Aboagye, had said he agreed with the decision by the government to reverse the benchmark value policy.
According to Mr Miracles Aboagye, he believed that GUTA failed to honour its part of the bargain when the policy was introduced following the failure of the union to reduce prices of their goods.
He stated that one reason for the introduction of the policy was for GUTA to reduce prices of the goods but that has not happened.
“One of the reasons I side with the government on the reversal is that GUTA said if government gives them the 50 per cent discount they will reduce prices. Did they reduce prices? No, they didn’t. If you don’t do that then you don’t deserve to continue enjoying that discount.” he said.
Also stressing that, “When the reduction was given there was no price decrease.”
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He further accused the main opposition National Democratic Congress (NDC) of deceiving Ghanaians that the reversal of the policy will lead to increment in prices of the affected items.
However, Dr Joseph Obeng said “The benchmark did not have any effect on these things you are talking about. The benchmark did not have any bearing whatsoever. Ask if the benchmark policy is reversed like they are craving for, are the prices of the goods going to go down?”
He added “It is never true. That is what our detractors are using against us. Ask the companies, they have the opportunities, they have the machines located in Ghana, the raw material price is the same everywhere in the world and they have advantage of the benchmark reduction also, ask them if they reduced prices because of the benchmark. They will tell you because of the exchange rate and other factors at the port we could not reduce. This is not fair.”
The implementation of Government’s policy directive on reversal of reduction of values of imports on selected items which was set to take effect from Thursday, 6th January, 2022 has been deferred to Monday, 17th January, 2022
Transitional arrangements to ensure a smooth implementation will allow a storage free period for vessels that discharged on 31st December, 2021 to go through clearance without being affected by the reversal policy.
The reversal affects 143 items under three categories prescribed by the Ghana Revenue Authority.
The benchmark value, which is the amount taxable on imports, was reduced by 50 percent for some goods. The government had hoped that this was going scale up he volume of transactions of make Ghana’s ports competitive.
The government decided to reverse this decision after it met opposition from Association of Ghana Industries and the Ghana Union of Traders Association (GUTA).
But it met opposition from trade unions including the Ghana Union of Traders Association (GUTA) and Importers and Exporters Association of Ghana (IEAG).
The Executive Secretary of the IEAG, Sampson Asaki Awingobit, served notice to sue the government over the reversal of the 50 percent benchmark on value on imports if the GRA does not stop the move.
