• GRA is seeking to rake in more revenue at the ports
• GUTA wants the policy to be maintained
Member of Parliament for Bolgatanga Central Isaac Adongo has questioned the reasoning behind 50% reduction of benchmark values on some selected imported products in the country.
Vice President, Dr. Mahamudu Bawumia at the 2018 Economic Management Team Lecture stated the reduction of the 50% Benchmark Values on some selected items imported into the country would increase the volume of traffic at the country’s ports.
“Togo port is doing three times the volume of cargo traffic to Ghana. The reduction in the benchmark values will lead to high cargo traffic to Ghana and more revenue to government.” Dr. Bawumia explained.
The Ghana Revenue Authority (GRA) has however written to the Finance Minister, Ken Ofori-Atta for the removal of the 50% reduction on some 32 categories of items imported into the country.
According to the letter signed by the Commissioner-General, Rev. Ammishaddai Owusu-Amoah, the move is based on an agreement reached with the business community such as the Association of Ghana Industry, AGI to ensure government generates more revenue.
But reacting to the development on Facebook, Member of Parliament for Bolgatanga Central and deputy ranking for the finance committee of Parliament, Isaac Adongo argued the reasoning underpinning the reduction in the benchmark values as announced by the Vice President is flawed.
According to him, there are no way importers will overlook neighboring Togo which operates a free port for Ghana because of a reduction in some duties.
“Togo port is doing three times the volume of cargo traffic to Ghana. The reduction in the benchmark values will lead to high cargo traffic to Ghana and more revenue to the government- Dr. Mahamudu Bawumia, 2018 EMT lecture. Fast forward 2021; we are restoring benchmark values to increase revenue, GRA. ‘Ceteris Parabus’ Economist.” he wrote on Facebook.
“How could anyone in his right senses think that importers will divert their cargo from a free port to your port because you have offered a discount? Analogue brain doing Yahoo internet digitalization,” he further queried.
Meanwhile, the Ghana Traders Union Association, GUTA has kicked against the move by the GRA to remove the discount on the benchmark values arguing any such action will collapse their businesses.
The affected items include, sugar, noodles, palm oil, roofing sheets, toilet paper, facial tissue and towel, chocolates, Portland cement, clinker and mosquito coil.
The document also targeted vehicles, ceramic tiles, aluminum products, cartons, textiles, fruit juices, among others.
According to the correspondence to the finance ministry from the GRA all items under the 32 categories currently enjoying port clearing discounts will no longer enjoy that special dispensation from November 15, 2021.
The letter dated November 12, 2021 envisaged the 2022 budget would have been presented before today for the reversal to take effect.
Management of the Ghana Revenue Authority, GRA has however clarified the letter to the finance minister for reversal of the discount is a proposal waiting for approval.
Such approval according to a statement from the GRA will be communicated in the 2022 budget to be presented on Wednesday November 17, 2021. Read Full Story
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