Ken Ofori-Atta, the Minister for Finance has said the government is working to avert any hardship on importers and consumers that may arise due to the suspension of the 50% benchmark value.
Speaking at a press briefing on Monday (6 December 2021), the minister was unable to assure importers of restoring the 50% benchmark value but said the government is committed to safeguarding the interest of local manufacturing industries and creating jobs.
He said, “on the benchmark values, we shall avert any hardship on importers and consumers while safeguarding the interest of local manufacturing industries to secure and expand jobs for our people. The administrative exercise which reviews 43 out of 81-line items has the objective to promote local manufacturing under the 1D1F policy including the assembly of vehicles.”
“It is important to note that this adjustment affects only 11.4% of the total CIF value, of which 50% is for vehicles. From our analysis, the potential increase in retail prices should be relatively insignificant and therefore inflation should be muted,” he stated.
Suspension
The government suspended the 50% benchmark values on selected general goods and the 30% on vehicles to make the measure more efficient and targeted.
Presenting the 2022 Budget Statement and Economic Policy in Parliament on Wednesday (17 November), Ofori-Atta said the move was consistent with the government’s policy to promote local industry and improve foreign exchange earnings.
Opposition
But business groups in the country have since kicked against the government’s decision to suspend the policy.
It comes after a crunch meeting by the Ghana Union of Traders Association (GUTA) comprising 68 trader associations and other business groups.
A statement issued by GUTA on behalf of the business groups on Wednesday (24 November) said the conditions that necessitated the introduction of the policy has been worsened following the outbreak of the COVID-19 pandemic.
Nicholas Brown
Asaase Radio 99.5 – tune in or log on to broadcasts online
99.5 in Accra, 90.7 in Ho, 98.5 in Kumasi, 99.7 in Tamale, 89.5 in Tarkwa, and 106.9 in Walewale
Follow us on Twitter: @asaaseradio995
#AsaaseRadio
#TheVoiceofOurLand
