- “In my view it is more beneficial for the country to restore this benchmark value policy and making sure that it empowers domestic production to produce these products, import substitution, not only import substitution to reduce your import bills, but also having the capacity to export, to increase your foreign currency revenue to shore up your reserve."
Prof Eric Osei-Assibey, an associate professor of economics and dean of international programmes at the University of Ghana has called for the immediate restoration of the benchmark value policy.
The Ghana Revenue Authority (GRA) suspended the implementation of the reversal of the benchmark values indefinitely following a directive from the President to pave way for further stakeholder consultation.
”Removing it is almost like counterproductive. The other side will make noise, you will have immediate hike in prices, but that will not be sustained,” Prof Osei-Assibey said on Asaase Radio’s Townhall Talk show on Friday (21 January).
“In my view it is more beneficial for the country to restore this benchmark value policy and making sure that it empowers domestic production to produce these products, import substitution, not only import substitution to reduce your import bills, but also having the capacity to export, to increase your foreign currency revenue to shore up your reserve.
“So the benefit is much more wide than the noise that others are making that it is going to increase inflation, yes but inflation has to be persistent, the prices will increase but if you are able to produce the toilet tissue here and the prices are good, why will people go out there to import,” Prof Osei-Assibey said.
Prof Osei-Assibey said the policy is critical in boosting the capacity of local firms and reducing unemployment.
“…Prices will reduce, we will generate employment for your people, you will generate revenue and your economy will be more prospering than kow-towing to this pressure, …because in my view it was uncalled for in the first place.”
Watch the full interview below:
Government to take final decision on benchmark values end of January
Charles Adu Boahen, Minister of State at the Ministry for Finance has revealed that the government before the end of January will make final a decision regarding the benchmark values.
According to him, engagement with stakeholders is ongoing to achieve a favourable outcome that will satisfy all parties involved.
Speaking at an investiture dinner to swear in a new president of the Association of Ghana Industries (AGI), Boahen said “undoubtedly, the reversal of benchmark values is of particular concern to AGI and the wider business community. I think every speech that I have heard so far has referenced that, so I know it’s something that is of major concern to your members.
…ladies and gentlemen, I’m happy to let you know that there are continued engagements, with stakeholders ongoing, please do not give up, let’s persevere and I’m sure we’ll find ourselves with some good news before the end of the month (January) with regards to the benchmark values,” he stated.
President Nana Addo Dankwa Akufo-Addo directed the Customs Division of the Ghana Revenue Authority (GRA) to suspend its planned implementation of the government’s policy directive on the reversal of the reduction of values of imports on selected items.
The president asked for the policy to be delayed to allow for wider consultations. It is also in order that the complaints of traders opposed to the reversal be “sufficiently considered before a decision on implementation and its timing is finally taken.”
On (13 January), the Ghana Revenue Authority (GRA) said it has suspended the implementation of the reversal of the benchmark values indefinitely.
According to the GRA, the move is to enable further engagements with all the relevant stakeholders on the way forward.
Fred Dzakpata
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