Benchmark values reduced to 30% for goods and 10% for vehicles

The finance ministry, Ghana Union of Traders Association, Association of Ghana Industries, Ghana Importers and Exporters Association and other stakeholders in the manufacturing, import and export in the trading industry have concluded on a 30% and 10% as benchmark values for general goods and vehicles respectively.

This comes after months of consultations, negotiation and agitations after the government through the Ghana Revenue Authority announced the planned suspension of the benchmark values which was initially pecked at 50%.

While the other trade unions said the suspension will have a negative impact on their businesses, AGI argued that local manufacturing industries will collapse if the policy is not reversed.

Now, according to the government, the reduction of the benchmark values will take effect from March 1, 2022, which comes as a win-win situation for all stakeholders.

GUTA set to dialogue with AGI to boost local industries

Clement Boateng, vice-president of the Ghana Union of Traders Association (GUTA) expressed the group’s resolve to dialogue with the Association of Ghana Industries (AGI) to enhance the local manufacturing sector.

This comes on the back of President Akufo Addo’s directive to the Ghana Revenue Authority (GRA) to halt the planned implementation of the government’s policy directive on the reversal of the reduction in benchmark values on selected items.

In an interview with Asaase Business, Boateng said GUTA will be ready to market such local raw materials for the benefit of local industries.

He said: “where they (AGI) have a comparative advantage and raw materials will not be difficult to come by, because some of the materials that they even use in their production is imported but with the government’s 1D1F, the government is trying to locate factories where raw materials are easily accessible so that production cost will be low without importing raw materials from outside”, he stated.