IEA, GUTA ask govt to suspend reversal on benchmarks
AGI urges govt to uphold reversal
Executive Secretary of the Importers and Exporters Association (IEA), Aasaki Samson Awingobit, has said the association would be heading to court to challenge the reversal of the discount on benchmark value.
According to him, the IEA was heading to court because the Ghana Revenue Authority was implementing a government directive which was not backed by law.
Aasaki Samson Awingobit told Joy News that the reversal of the discount was not only legally wrong but also morally wrong.
“I think morally, and legally it is wrong for Customs to have been doing this. We think we have to fight it now. There is nothing like benchmark value in this world.”
“Where is the law backing this benchmark value that Customs is talking about or the government is talking about? In so many ways, we are going to demonstrate vehemently against the government,” he said.
Benchmark value is the percentage of imported goods which would be taxed and it is meant to encourage local manufacturing of goods.
The Benchmark value on vehicles was discounted by 30 percent and that of some selected goods by 50 percent.
This means that only 70 percent of cars imported by an individual and 50 percent of these selected imports can be taxed.
Government implemented the measure in 2019 so the importers would reduce the price of goods they sell. However, the government said importers were not reducing their prices and therefore the need to reverse the discount.
The reversal of the discount implies that 100 percent of all imported goods are taxable.
IES and other stakeholders including the Ghana Union of Traders Association (GUTA) holders have urged the government to hold on with the implementation of the reversal for more negotiation. The Association of Ghana Industries on the other hand has urged government to uphold the reversal in other to protect local industries. Read Full Story
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