The Association of Ghana Industries (AGI) is fighting government over its decision to suspend the planned reversal of the 50% benchmark value disc
The Association of Ghana Industries (AGI) is fighting government over its decision to suspend the planned reversal of the 50% benchmark value discount.
Leadership of AGI has warned of a possible collapse of indigenous manufacturing companies if the government go ahead with the 50% Benchmark Value reduction on imported products.
Finance Minister Ken Ofori Atta during the 2022 budget presentation announced the reversal of 50% Benchmark Value and 30% on imported vehicles.
The announcement met the wrath of some groups in the country including the Automobile Dealers Union, Ghana Union of Traders GUTA among others, with the groups arguing that the move will inversely affect their business.
Following the agitations, president Akufo-Addo on Sunday, January 9, 2022,reportedly directed the Ghana Revenue Authority GRA to halt the implementation of the reversal of the benchmark values.
The move according to the president will help all players understand the policy before it is finally rolled out.
The government has however given a deadline of January 17, 2022 for all consultations to be concluded.
Speaking to Captain Koda, host of Kumasi based OTEC FM’s social program “Nyansapo ” on Monday, January 10, 2022, the Chairman of AGI of Ashanti, Bono, Ahafo and Bono East Regions Kwasi Nyamekye said the influx of imports at low cost is collapsing local manufacturing businesses.
“Locally produced products including those for which Ghanaian industries already has local production capacity have seen under serious threat from imports,” he lamented.
He hinted that most of their members are laying off their workers due to the high competition from low foreign products.
He urges government to create enabling environment for Ghanaian manufacturers to grow and compete with their foreign counterparts.
About benchmark value reduction
The benchmark value, which is the amount taxable on imports, was reduced by 50 percent for some goods.
The import value for cars was also reduced by 30 percent.
The government’s hope was that easing the import regime would make Ghana’s ports competitive by increasing the volume of transactions and increasing revenue generated at the ports.
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