John Boadu, the general secretary of the New Patriotic Party (NPP), has justified the need for the government to revise the benchmark value on imports of goods.
According to him, the government decided to abolish the policy to ensure that the country enhance its ability to produce some selected commodities locally.
In 2019, the government announced a 50% reduction in import values to make the trade through the ports more attractive as well as boost revenue mobilisation.
However, presenting the 2022 Budget Statement and Economic Policy in Parliament on Wednesday (17 November), the government suspended the 50% benchmark values on selected general goods and the 30% on vehicles to make the measure more efficient and targeted.
Ken Ofori-Atta, Minister for Finance said the move was consistent with the government’s policy to promote local industry and improve foreign exchange earnings.
Speaking at a press conference organised by the NPP on Thursday (25 November), Boadu said the reversal of the policy will go a long way to benefit the ordinary Ghanaian and boost local industries.
“It is important that the government take the bull by the horn by selecting certain items and commodities that we can produce in this country. So, the government has decided in this year’s budget to select 32 items that we can produce here and we’ve decided to scrap the benchmark values. I’m aware that people in production like the association of Ghana industries are so happy about it, poultry farmers and a lot of people.”
“Because of the reduction of the benchmark values, it’s creating a lot of problems for them and creating employment in other countries and we were suffering here. but others are not so much happy about it however, it is important we take the bull by the horn. I also believe that by this decision, local production will increase, although we’ll be experiencing some increase in prices of foodstuffs, in the long run, the country will benefit,” he said.
Business groups in the country have since kicked against the government’s decision to suspend the policy.
It comes after a crunch meeting by the Ghana Union of Traders Association (GUTA) comprising 68 trader associations and other business groups.
A statement issued by GUTA on behalf of the business groups on Wednesday (24 November) said the conditions that necessitated the introduction of the policy has been worsened following the outbreak of the COVID-19 pandemic.
Nicholas Brown
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