The government has concluded on a 30 percent discount for all goods
The Association of Ghana Industries (AGI) has indicated that the Ghana Revenue Authority (GRA) will not be able to make the needed revenue if the government does not scrap the benchmark value.
The government has concluded on a 30 percent discount for all goods and a 10 percent discount for vehicles on the benchmark values reduction policy.
The initially proposed discount was 50% that should be applied on the benchmark values of selected goods imported into the country, while a 30 percent discount was applied on vehicles.
However, speaking on Starr Today Monday, President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim-Darke, said the move to reduce the benchmark value is “not tenable, scientific and not economics.”
“We are suggesting to the government that is not appropriate, it will not help us. The government is even convinced about our position. What we need to assist the government to do is the fear of the people. The fear of the people because of the nature of politics we run. Let’s help the government do what is needful and right.
“We know that the 30 and 10percent reduction are not suitable for operations to make us competitive. We know that that would not help the government and the GRA to meet its target. We know because we have computed,” the AGI President disclosed.
He added that the decision has been the same position from April 2019 that “in running businesses, it’s an issue of input and output. Your input at various cost centers. Your cost centers are what determines profitability, your competitiveness in your marketplace as well as helping you build capacity to export.”
Mr. Ayim-Darke pointed out that all the factors engaged in production come with a cost adding that some of the factors keep increasing like the exchange rate, fuel price among others.
“Once you reduce our margins in terms of profitability, how then do we become competitive to create jobs, create capacity, go to Continental Free Trade and other related ones. As against other players in the city that import only finish products,” he quizzed.