President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, says the Association of Ghana Industries (AGI), is behind government’s decision to reverse the 50percent benchmark value.
He disclosed the AGI lobbied government to reverse the benchmark values “with the excuse that our goods are cheaper than theirs. The question should be why are their goods expensive than what we import when those we import from and members of the AGI get their raw materials at the same price. The AGI wants gov’t to reverse our benchmark values whilst keeping theirs.
Dr. Obeng in an interview on Happy98.9FM’s Epa Hoa Daben show with Sefah-Danquah advised the AGI to focus on factors influencing their high cost of production rather than interfering in the business of importers if they want to stay competitive.
“Members of the AGI pay as high as 24percent on loans whilst their competitors pay as low as 1percent on loans. The high cost of power and the use of obsolete machinery also hinders their productivity and those are things they should be focused on resolving. Instead of sharing with gov’t what affects their competiveness, they are trying to sabotage us.”
On his accord, GUTA will not fold its hand for government to squeeze them for the benefit of the AGI. “Taxes paid by GUTA are used to support local manufacturers and most of the raw materials imported by the AGI are zero rated. The gov’t also pays them back their VAT and does all these to reduce their cost of production.”
The Chairman of the Oil and Gas Sector of the Association of Ghana Industries (AGI), Kwame Jantuah, has welcomed government’s decision to reverse the 50% benchmark value.
His comment comes after several calls on the government to review the 50% benchmark value policy which makes imported products cheaper than locally made ones thereby pushing many producers out of business.
In an interview with Citi News, Mr. Jantuah said the decision will help in creating employment locally, boost the manufacturing sector and make the country competitive in the global market.
“We pushed for reversal of the benchmark value because we realized it was hitting the industry. Yes, we appreciate it and we appreciate what GUTA is saying, but we need to create local employment so that we don’t have to be importing things all the time. We need to create local employment and grow industry.”
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