Benchmark value reversal mischievous; not to support AGI – NDC
Sammy Gyamfi, the National Communications Director for the National Democratic Congress (NDC), has noted that the claims by government that the reversal of the benchmark value policy to support the Association of Ghanaian Industries (AGI) and boost local production is mischievous.
According to him, the claims by government are lies and ridiculous since most of the affected items like vehicles, spare parts, sugar, plants and equipment and pharmaceutical products are not produced in Ghana.
He said that some of the items on the list are also input materials for local production and so if the benchmark value is reversed on the input materials, it will lead to an increase in the prices of the input materials and hence government is not boosting local production as it claims.
“Some of the item’s on the list are also input materials for local production, so for instance the clinker which is used in cement production is an input material for cement production, so reversing the benchmark value would actually result in an increase in the price of the clinker, which will then result in an increase in the price of cement. In doing so, government is not actually boosting local production as it claims”, he said.
Mr Gyamfi made this known in a press conference organized by the NDC on the reversal of the benchmark value discount on imported goods at the party’s NDC’s headquarters in Accra on Wednesday.
Read: Benchmark values reversal will boost local production – AGI
Speaking further, he noted that if the government is keen on boosting local production, then government should make access to the factors of production cheap, adding that, there should be an increased access to credit, reduction of electricity tariffs for manufacturing, managing the cedi depreciation so that Ghanaians manufacturers can afford the inputs of production, amongst others to help boost local production.
He furthered that the reversal of the policy, would exacerbate the living conditions of Ghanaians and increase the cost of doing business.
“So it will increase the harsh living conditions of Ghanaians and increase the cost of doing business which will in turn affect the turnover of businesses which will then lead to the collapse of businesses and the loss of jobs”, he added.
Lastly, he said that the NDC shares the views of the Ghana Union of Traders Association (GUTA) and the Importers and Exporters Association of Ghana (IEAG), for government to immediately withdraw the policy, adding that given the period the country is in, it is not the time for draconian revenue measures which will only worsen the living conditions of Ghanaians.
“The NDC shares the views of the Ghana Union of Traders Association and the Importers and Exporters Association of Ghana for government to quickly withdraw the policy which if not done, will further stifle the already burdened businesses in the country”, he stated.
“This is not the time for draconian revenue measures or harsh revenue measures by government which will only worsen the living conditions of Ghanaians”, he stressed.
