GRA indefinitely suspends reversal of benchmark value discounts

According to a statement released on Thursday, January 13, 2022, the move would give room for engagements with relevant stakeholders.

The statement reads, “Following the outcome of a meeting held on Wednesday, January 12, 2022, the Customs Division of GRA has been directed to suspend the implementation of government's policy directive on the removal or reduction of values of imports on selected items until further notice, to enable more engagements with all the relevant stakeholders.”

President Akuffo-Addo earlier instructed the Customs Division of the GRA to hold on in executing the reversal of discounts on benchmark values.

The Ghana Revenue Authority (GRA) on January 2, 2022, announced that starting January 4, 2022, its Customs Division will reduce the benchmark value on some selected goods by 50 per cent.

However, the Ghana Union of Traders Association (GUTA) was not pleased with the directive since they held the view that the reversal of the benchmark values would escalate the prices of goods.

President of GUTA, Dr Joseph Obeng in an earlier interview said, “Prices are going to double. The benchmark value was the only last straw businesses were holding on to.”

The leading opposition party, National Democratic Congress (NDC) also held a press conference to condemn the policy and therefore called on the government to rescind its decision.

The National Communications Officer of the NDC, Sammy Gyamfi said, “The NDC holds the view that this is not the time for more taxes and draconian revenue measures such as the reversal of benchmark value discounts. We share in the view espoused by GUTA that the GRA withdraws the statement announcing this measure which will only go a long way to stifle the already burdened businesses in the country”.

Meanwhile, the Association of Ghana Industries (AGI) wishes the government to implement the policy to help boost local industries in the country.

The Executive Director of the AGI, Seth Twum Akwaboah said, “If you don't build your local capacity as you are allowing import to come in duty-free, it will wipe out all your market. But if you boost local capacity now, then you can also export to other markets. So if you suspend it means that you are killing local industry forever and it will never work. So let's continue the consultation but the implementation should start”.