The Ghana National Chamber of Pharmacy has called on government to reconsider its intended decision to remove the benchmark import value on pharmaceutical products.
According to the Chamber, failure to reverse the policy will “lead to the increase of prices of medicines and other medical supplies”. Contained in a statement, the group insisted that the removal of the benchmark value will have far-reaching implication on the country.
“The affordability, accessibility, and improvement of patients care are the overriding objectives of the current benchmark policy for pharmaceutical products. The state loses on the removal of benchmark and the increase of final retail price it pays for medicines under the NHIA… Therefore, the Ghana National Chamber of Pharmacy urges the government to reconsider its decision of removing the benchmark on pharmaceutical products”.
Ghana National Chamber of Pharmacy
Prior to this, the Ghana Revenue Authority (GRA) in a letter signed by the Commissioner General, Rev. Ammishaddai Owusu-Amoah and forwarded to the Finance Minister, Ken Ofori Atta, revealed that the move is informed by an agreement reached with the business community to generate more revenue.
The Ghana Revenue Authority indicated that the intended cancellation of the discounts on Benchmark Values for vehicles and general goods would begin from the 15th of November 2021.
Following this, the removal of the 50% Benchmark Values will affect 32 categories of items at the ports although the listed items under the categories are currently enjoying port clearing discounts, which will no longer apply.
The items include, sugar, noodles, palm oil, roofing sheets, toilet paper, facial tissue and towel, chocolates, Portland cement, clinker and mosquito coil. Other items are vehicles, ceramic tiles, aluminium products, cartons, textiles, fruit juices, among others.
Removal of benchmark policy will be suicidal
The decision by GRA to reverse the policy has seen some relevant stakeholders demanding a reconsideration of the removal of the benchmark policy. For instance, the Ghana Union of Traders Associations (GUTA) has asked its members to reject plans to reverse the benchmark value reduction policy. Some stakeholders like the Association of Ghana Industries (AGI), on the other hand, have raised concerns about the move, insisting that it made local producers uncompetitive.
President of GUTA, Dr. Joseph Obeng, earlier, iterated that any intention by the government to scrap the 50% Benchmark Value policy at the ports “will be suicidal”.
In a press statement, he expressed that the policy has brought relief to the trading community, sanity into the system, and eased tension and agitations amid the impact of the coronavirus on cross-border trade.
Justifying his stance, Dr Obeng noted that any decision to remove “this good policy” will not only collapse businesses but also cause an unbearable rise in prices of goods and services beyond the reach of consumers.
It will be recalled that government in 2019, reduced the benchmark value or delivery values of imports, by 50%, except for vehicles which were to be reduced by 30%. This was to reduce smuggling while increasing its revenues.
The Importers and Exporters Association of Ghana has also threatened to have its members increase the price of the goods they bring into the country if the government goes through with the reversal.
