Removal of benchmark policy not right - GUTA

Directive will affect businesses negatively, GUTA

Reduction directive takes effect Jan. 4

Importers will transfer the cost to consumers, GUTA

First Vice Chairman of the Ghana Union of traders Association, (GUTA), Clement Boateng, has described the removal of the benchmark value reduction policy on imports as a wrong move.

According to him, this will have a bad impact on Ghanaian businesses that rely on imports and also affect consumers negatively.

“The reversal of this benchmark value is not right and we think it is going to have a very negative impact on businesses”.

Speaking in an interview on Joy News, Mr. Boateng stated that this decision by government is highly influenced by the AGI.

He however believes that the AGI cannot produce the 43 items affected to satisfy the demands of Ghanaians if imports were to reduce because of the reversal.

“We all know that this reversal has come about as a result of lobbying of AGI but we think the AGI do not have the capacity to produce the items from which the benchmark value has been taken off”.

He however assured of the association’s continuous engagement with government to conclude the matter.

“We think GUTA has an unfinished business with government. We will still continue to engage government and see what best could be done”.

The Customs Division of the Ghana Revenue Authority (GRA) will effective January 4, 2022, begin the implementation of government’s policy directive on the reversal of the reduction of values of imports on 43 selected items.

Also known as the ‘benchmark values’, the reversal will affect the selected items from all the three categories on which the reversal was applied, a statement from the Authority stated.

The items to be affected include the home delivery value of vehicles, goods on which benchmark values are applied and all other goods.

This means the Home Delivery Value of vehicles will no longer be discounted by 30%.

Also, the full value shall apply without any reduction for all other goods, where the importer has an invoice for which the value is higher or lower than the established Transaction Price Database.

According to GRA, this is to ensure that importers or agents pay 100% duty on selected items. Read Full Story