Government goes ahead with reversal of 50% benchmark value despite stiff opposition from GUTA
Government has repealed the 50 percent benchmark value applied to a certain number of goods imported into the country.
In the presentation of the 2022 budget statement on Wednesday, November 17, 2021, Minister for Finance, Ken Ofori-Atta noted government is currently seeking the approval and consideration of parliament to restore the benchmark values on imports by suspending the 50 per cent discount on selected general goods and the 30 per cent discount on vehicles.
According to the Minister, the suspension and subsequent repeal of the benchmark policy has become necessary to strengthen domestic revenue mobilisation and continued restraint in building a sustainable entrepreneurial nation as well as strictly enforce commitment controls in line with the Public Financial Management Act, 2016 (Act 921).
The decision by government is despite strong opposition from the Importers and Exporters Association as well as the Ghana Union of Traders Association (GUTA).
The trade groups had called on the government not to scrap the 50 per cent discount because it would lead to a hike in the price of general goods.
The benchmark value policy which was introduced last year by the government was to give respite to businesses badly hit by the COVID-19 pandemic.
As such, the importation of certain goods and products including automobiles, beverages and others were given substantial discounts on imports.
GUTA, in a statement together with other trading partners, issued a stern warning to the government against the move.
GUTA accuses AGI of double standards
The Ghana Union of Traders Association (GUTA), has accused the Association of Ghanaian Industries (AGI) of portraying double standards in that while the AGI lobby’s government to reverse the 50 percent benchmark value reduction on goods imported into the country by its members, the AGI simultaneously is requesting that government maintain the 50 percent benchmark value reduction for imports by their members.
In a press briefing held on Monday, November 15, 2021, and following the announcement by the GRA of government’s reversal of the 50 percent benchmark value reduction, the leadership of GUTA noted it is surprised to hear that “AGI is lobbying the government with malicious lies, self-centeredness, egoism, elitism and an outright show of arrogance seeking the help of the government to suppress other key players [GUTA] in the private sector.”
According to GUTA, any attempt to suppress trading activities of its members and the trading sector of the economy at large, will not only be inimical but will also be suicidal for the state and people of Ghana.
“It will be very pathetic, insensitive and discriminatory for the government to heed to the incongruous demands of these callous elements in the private sector, to cause the reversal of the 50% reduction of the benchmark value to suit their whims, especially in this era when businesses are in serious distress,” GUTA noted.
Commenting on the reversal of the 50 percent benchmark value policy, GUTA noted it does not and will not accept the directive from the GRA asserting that before any decision is taken on the policy, there is supposed to be a thorough stakeholder discussion between the Association and the Economic Management Team (EMT).
“We wish to state herein that, it has come to our notice that the Ghana Revenue Authority (GRA) has issued statement informing the public that the 50% benchmark value reduction policy has been reversed; effective today, Monday 15th November 2021.
“We hereby tell members of the trading community that we are not in the known of who authorized the directive, as we have been told by the Economic Management Team (EMT) that there will be a thorough stakeholder consultation before any decision is taken on that policy. This was also reiterated by the Senior Minister, Hon. Yaw Osafo-Maafo in the last Presidential Business Dialogue held at the Kempinski Hotel, Accra.
“We of the trading community DO NOT ACCEPT and WILL NOT ACCEPT this directive and therefore ask members of the trading community to ignore this statement of GRA outright. However, GUTA’s door is still open to the government’s quest for stakeholder engagement on the matter,” stressed GUTA.
