Benchmark Values: Gov’t to announce policy reversal in 2023 budget
A reversal of the benchmark value discount policy is expected to be announced in the upcoming 2023 budget.
The decision by government to cancel the benchmark value policy introduced in April 2019 was disclosed by President Akufo-Addo during a meeting with the Association of Ghana Industries (AGI).
Speaking on the planned cancellation of the policy by government in an interview on Wednesday, November 2, President of the AGI, Humphrey Ayim-Darke noted the benchmark value policy has seriously weakened government’s revenue base.
“I recall in the early days of the engagements; we clearly stated the challenge that policy will bring to the economic development strategy that the country was embarking on. Our colleagues on the other side were looking at the short-term gain of pricing.
“We are glad today, as part of the rollout plan, the government pledged to us, that by the close of the year such policies will be reversed to bring about harmony. So that our production base can be competitive,” he remarked.
The benchmark value policy was introduced by government in an attempt to make Ghanaian ports competitive, reduce smuggling and increase government’s revenue.
The policy provided a discount of 50% on the delivery or benchmark values of imports with the exception of vehicles.
However, in February this year, the Finance Ministry, Ghana Union of Traders Association (GUTA), Association of Ghana Industries (AGI), Ghana Importers and Exporters Association and other stakeholders in the manufacturing, import and export in the trading industry, concluded on a 30% and 10% benchmark values discount for general goods and vehicles respectively.
