The Ghana Revenue Authority’s (GRA) plan to boost benchmark values has alarmed the Ghana Union of Traders Associations (GUTA).
The organisation observed that the World Trade Organization’s valuation methodology conflicts with the usage of benchmark value in a statement that was signed by its president, Dr. Joseph Obeng.
It recalled how rising benchmark prices in the past increased the cost of doing business in Ghana, which in turn sparked unrest within the trading community in the first few months of this year.
“It has come to the notice to the members of the trading community that the Ghana Revenue Authority (GRA) intends to increase the benchmark value.
“We hereby categorically state that the use of the benchmark value as a valuation method is illegitimate and contrary to the World Trade Organization’s (WTO) valuations system, which should not be encouraged in every sense of the word.
“It should be noted that the introduction of this system by GRA led to escalation of import duties, which resulted to agitations by the trading public and led to the implementation of the benchmark reduction policy to mitigate the high cost of doing business in the country,” part of the statement read.
GUTA however wants policymakers to intervene in the GRA’s intention to hike benchmark values stressing that it was ‘unacceptable’, especially in times when benchmark reduction policy engagements have not been resolved.
“As we issue this statement, the benchmark reduction policy has become a topical issue that has not been resolved, so for GRA to bring any increment to aggravate the situation in the country is totally unacceptable.
“In view of the aforesaid, we wish to appeal to the policymakers to stop GRA from the abuse of their discretion,” the statement concluded.
Amid recent economic challenges confronting the country, particularly on the free fall of the Cedi, GUTA members last week closed their shops to register their displeasure.
It has warned of similar action if the government does not immediately implement measures to address the depreciating Cedi which it says is eroding their profits.
Find below the full statement of GUTA
It has come to the notice to the members of the trading community that the Ghana Revenue Authority (GRA) intends to increase the benchmark value.
We hereby categorically state that the use of the benchmark value as a valuation method is illegitimate and contrary to the World Trade Organization’s (WTO) valuations system, which should not be encouraged in every sense of the word.
It should be noted that the introduction of this system by GRA led to escalation of import duties, which resulted to agitations by the trading public and led to the implementation of the benchmark reduction policy to mitigate the high cost of doing business in the country.
As we issue this statement, the benchmark reduction policy has become a topical issue that has not been resolved, so for GRA to bring any increment to aggravate the situation in the country is totally unacceptable.
In view of the aforesaid, we wish to appeal to the policymakers to stop GRA from the abuse of their discretion.