Ahead of the presentation of the 2022
mid-year budget review, the Association of Ghana Industries (AGI) is calling
for full review of the benchmark values reduction policy.
According to the leading industry
group, despite the announced reduction in the benchmark values discounts
applied to general goods and vehicles, in February this year, their goods are
still unable to compete with imported substitutes.
When government in 2019 announced the
decision to reduce the benchmark values for some general goods by 50% and 30%
on cars, the idea was to increase volumes of traffic at the port and ultimately
increase government revenue.
While importers and exporters, freight
forwarders as well as the Ghana Union of Traders' Association praised
government for how the decision reduced the cost of doing business, groups such
as the Association of Ghana industries were concerned about the impact on the
competitiveness of their products.
In a bid to appease both industry and
importers, government revised the discount values downwards to 30 percent
discount for all goods and 10 percent for vehicles.
But according to the CEO of the
Association of Ghana Industries (AGI), Seth Twum-Akwaboah more can be done.
“We've already made several inputs
into the upcoming review. Key amongst our inputs relate to the benchmark
values. We want it reviewed fully. Some attention must be given to local
manufacturers, in terms of raw material exemptions. We also need a stable
macroeconomic environment. We also think the tax regime needs to be supportive
of industrial development. There are also specific interventions we want to be
given to specific companies and industries.”
By Citi Newsroom