Benchmark values reversal will boost local production – AGI
The Association of Ghanaian Industries (AGI) has indicated that the 50% benchmark value reversal by government will ensure that local production becomes buoyant.
AGI is of the view that due to the reversal of the policy, consumers are going to buy more from local producers.
The reversal of the 50 percent benchmark value on imports started Tuesday, January 4, 2022, affecting 43 selected items under the 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 to scale up the volume of transactions making Ghana’s ports competitive.
Speaking in an interview Accra-based 3FM, Chairman of the AGI, Tsonam Akpeloo, stated, “The policy is telling us to buy from the one producing in Ghana. By so doing, the local manufacturers will have jobs and satisfy their suppliers.”
“We should encourage our local manufacturers to produce and even export, are aware that there are other factors to be addressed but we want to focus on this policy which is affecting the economy”, he said.
Meanwhile, the IEAG has indicated that the policy reversal would be detrimental to the business community if it is not stopped immediately.
According to the IEAG, this would lead to many businesses losing their cargoes since importers would have to pay more outside their budgets.
A statement signed by the Executive Secretary of IEAG, Samson Asaki Awingobit, said, ”the position taken by government and by extension the Ghana Revenue Authority GRA on this matter would be detrimental to the business community if it is not reversed immediately.
“It would lead to many businesses losing their cargoes since importers would have to pay more outside their budgets even at this crucial time at the beginning of a new year. In the very likely event that such importers are not able to raise the additional funds to clear their goods on time, issues of uncleared cargo lists UCL would pop up and huge loses to demurrage would set in.
“Therefore, the IEAG is calling on the government and for that matter the GRA to withdraw this directive with immediate effect. The IEAG demands that such importers be given at least 14 working days to clear their already cleared cargoes from the port without the new 50% benchmark values.”
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Benchmark Values Reversal: GRA defers implementation of policy to January 6
Meanwhile, information reaching NorvanReports indicate that the Ghana Revenue Authority (GRA) has postponed the implementation of the reversal of the 50% benchmark values on vehicle imports and the selected 43 items as directed by government.
The deferment of the implementation of the policy by the statutory body follows a press statement issued by the Importers and Exporters Association of Ghana (IEAG).
In the said statement, the Executive Secretary of the IEAG, Samson Awingobit, noted that due to the commencement of the implementation of the policy on Tuesday, January 4, 2022, some importers are unable to clear their cargoes from the port and are being asked to re-enter their various BoEs for new values to be charged on their cargoes.
Additionally, the Integrated Customs Management System (ICUMS) platform has been shut to importers and clearing agents who completed the process in 2021 and waiting to clear their goods from the port.
In a response to the observations made by the IEAG, the GRA has therefore deferred the implementation of the policy to Thursday, January 6, 2022, to allow importers clear their goods from the port.
The GRA in communicating the new decision noted the following;
• For any assessed BOE that was affected by the earlier directive of the 4th January 2022, a post entry will be required to reverse the effect of the policy on the calculated taxes.
• Effective Thursday, 6th January 2022, any declaration not yet entered (where duty and taxes have not yet been paid or security not deposited) will be affected by the policy. A post entry will be required to enable recalculation of the taxes based on the policy.
• Where BOE tax assessment is accepted, but tax bill has not been paid, a post entry is required to enable recalculation of the taxes based on the policy.
