GUTA Blames Benchmark Values For High Cost Of Goods

Dr. Joseph Obeng

 

THE GHANA Union of Traders Association (GUTA) has cited the re-introduction of the benchmark values as the reason for the increase cost of goods in the country.

President of GUTA, Dr. Joseph Obeng, indicated that the 50 per cent reduction of the benchmark values of imports was illegal.

He has, therefore, called for the reversal of the policy since it does not conform to the World Trade Protocols.

Speaking at a Pre-Budget Forum, Dr. Obeng noted that the bench mark value was responsible for the rising cost of goods in the country.

“Benchmark system doesn’t exist anywhere; it does not exist in the World Trade Organisation valuation system, is illegal,” he stressed.

Instead, he said the customs division of the Ghana Revenue Authority (GRA) have to use the transactional value.

“What they [Customs] have to use is the transactional values but are now using their own discretions to bring out a set of values to benchmark our prices. Everyone is blaming us the trading community for high price of goods and services, but that is not true,” he stated.

The Benchmark Value Discount Policy was introduced in April 2019 by government in an attempt to make the Ghanaian ports competitive, reduce smuggling and increase government’s revenue from the port.

The policy provided a discount of 50 per cent on the delivery or benchmark values of imports with the exceptions of vehicles.

BY Jamila Akweley Okertchiri