President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, has revealed that government’s reduction of the benchmark value policy is a reasonable discount for the Association.

Welcoming the decision, he expressed gratitude to government for attending to the Association’s pleas by suspending the “whole exercise” and engaging them along with other stakeholders on their concerns. Dr Obeng intimated that GUTA put forth a “very cogent argument” during the consultation, one which government felt convinced to heed to.

“We entered into this stakeholder engagement with an open mind and being very objective because we were putting the nation at heart and also thinking about AGI and their concerns… Government also had to think about what was going to affect us in terms of double payment that we were going to face and the consuming public going to be surcharged unnecessarily. So, government has given us a reasonable discount; 30% for general goods and 10% for cars, for which we have accepted in good faith”.
Dr Joesph Obeng

Dr Obeng’s comments followed government’s reduction of the benchmark values on general goods from 50% to 30% as well as import discounts on vehicles from 30% to 10%.

On his part, the Greater Accra Regional President of the Association of Ghana Industries (AGI), Tsonam Akeploo, revealed that he is not aware of any government consultation with the AGI regarding the new benchmark value reduction on goods and vehicles. He noted that the Association has not been part of any discussion to arrive at the current “conclusion” regarding the discount and neither has it received any “official notification” from government.

“As you’ve heard, we’ve also heard about the 30% reduction and so on. Our view is simple. We were saying that we have been calling for the total reversal of the benchmark value because per the calculations, that’s the only way we can begin to get back the economy on track. You realize in recent times that the cedi has been depreciating against the dollar and the reasons are simple; because we are incentivising importation of finished products and so now it’s more lucrative to import”.
Tsonam Akpeloo

AGI committed to reversal of benchmark policy

Mr Akeploo insisted that the non-reversal of the policy is making the local economy suffer. He intimated that it is only when a business expands its local production it’s able to even export goods to improve the country’s “currency value”.

“So, for us the AGI, we still believe very strongly that government should consider to totally reverse the benchmark value. That way, all of us as a country will begin to be excited and be happy in building the nation Ghana together”.
Tsonam Akpeloo

Reacting to this, Dr Obeng disclosed that the first time stakeholders met with the finance minister, the “AGI was fully represented”. He explained that both sides were able to make their case on the benchmark policy, one which has yielded the current outcome.

“Government suspended it for us to have broader stakeholder engagement. The GRA met with us individually and talked with us and so, I’m surprised that they are taking this extreme position and entrenched position. We do not owe AGI anything and they cannot take us for ransom. What they are doing is not fair. They are just being extreme and just trying to manipulate government”.
Dr Joesph Obeng