GUTA Opposes Benchmark Value Reduction

GUTA Opposes Benchmark Value Reduction

 

 

The Ghana Union Traders Association (GUTA), has also expressed its dissatisfaction with the implementation of the reversal of fifty 50 percent benchmark value on imports. The reversal which was also announced by the Ghana Revenue Authority, (GRA) on Sunday, January 2, 2022, and took effect on Tuesday, January 4, 2022, will

 

affect 43 selected items including rice, poultry, sugar, palm oil, toilet paper, mosquito coils, machetes, and vehicles. The President of GUTA, Joseph Obeng argued that the reversal was ill-timed. He said GUTA is seeking to actively engage the government on the reversal too, given the adverse effects it will have on the Association

 

 

and other unions. The government has assured that they will have stakeholders’ engagement, but that has not happened yet. We are still seeking dialogue with the government. The benchmark value did not come out of emptiness. It came out of a problem, so if you say you are reversing the benchmark policy, then are you [the

 

 

government] reversing us to that problem? Mr. Obeng asked. Despite GUTA’s opposition to the reversal, the Association of Ghana Industries (AGI), has thrown its weight behind the government’s move. The President-elect of the AGI, Humphrey Darkey, said the reversal is vital in reviving Ghana’s economy. He thus asked the

 

 

government to remain resolute in its decision. Our position from the very day this policy was introduced has been consistent. We stated and demonstrated by scientific research that the policy was a misalignment to the economic paradigm of the country. Benchmark came and brought about dislocation in the economic

 

 

model. We also think it is a welcoming news [that the benchmark value has been reversed], and we urge the government to be bold to complete with its agenda of economic transformation. We ask the government not to budge on its decision. The government introduced the benchmark policy in 2019 in accordance with the World Customs Organization’s policy of regular review

 

 

of valuation databases. Under this policy, certain commodities are benchmarked to the prevailing world prices as a risk management tool, to reflect the true market dynamics of these commodities. It also takes into consideration factors such as protection of health, the environment, and security, as well as protection of local industries.