• Sun. Sep 25th, 2022

If benchmark values are reversed, goods prices will treble – GUTA warn Government


Jan 4, 2022 , ,

The Ghana Union of Traders Association (GUTA) has warned that if the government reverses the value reductions on selected items, prices will skyrocket.

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

It follows an announcement from the Ghana Revenue Authority (GRA), which stated that from January 4, benchmark values for 43 products will be reversed.

The reversal will affect the items selected from all three categories on which it was applied.

The home delivery value of automobiles, goods on which benchmark values are used, and all other things are among the items that will be affected.

This means that automobiles’ Home Delivery Value will no longer be discounted by 30%.

Furthermore, if the importer has an invoice with a value that differs from the established Transaction Price Database, the entire invoice amount will be applied without any adjustments.

However, GUTA President Dr. Joseph Obeng has cautioned that any attempt to implement this strategy in the 2022 Budget will cause havoc in Ghana’s distribution system.

In a previous press statement, he said that repealing the policy would be suicidal, claiming that it provided relief to the trading community, restored rationality to the system, and reduced anxiety and agitation as a result of the coronavirus’s impact on cross-border trade.

“Any attempt to remove this good policy of the government that brought relief will be suicidal for the state because it will not only collapse business but also cause an unbearable rise in prices of goods and services beyond the reach of consumers, especially low-income earners and the unemployed,” he warned.

“We should be very surprised if the government succumbs to this treacherous and diabolic request of the AGI who are trying to lobby against this most acceptable flagship policy of the government to destroy the distribution sector of the economy.”

Dr. Obeng went on to say that adopting the new guideline would disrupt the beverage industry’s value chain.

“We are expecting the hike of products by about 25%. This development will heavily hit the food and beverage industry,” he stated.

The GRA, on the other hand, has indicated that, in light of the reversal, a “series of engagements have been had with relevant stakeholders to reach a consensus on the implementation of the policy.”

According to the instruction, importers or agents will be required to pay 100 percent duty on certain commodities.

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