First of all, a benchmark according to the dictionary, is a standard or point of reference against which things may be compared. This in simple terms means that it serves as a standard of measure.
The benchmark value is a cap on imported items to increase the cost of imports thus discouraging its excess.
Meanwhile, government reduced the benchmark value by 30-50% to relive importers of expensive duty payments and charges.
However according to the Ghana Revenue Authority, government in 2019 introduced the benchmark policy in accordance with the World Customs Organisation’s policy of regular review of valuation database.
Under this policy, certain commodities are benchmarked to the prevailing world prices as a risk management tool, to reflect the true market dynamics of these commodities.
It also takes into consideration factors such as protection of health, the environment, and security as well as protection of local industries.
The GRA at the latter part of 2021 announced that the benchmark value reduction will no longer be in use effective January 2022.
This development has since been met with a lot disagreements from the various trade unions in the country who say this may result in an increase in prices and a resultant scarcity of commodities will be affected.
In line with the reversal, series of engagements have been held with relevant stakeholders with the aim of reaching a consensus on the implementation of the policy.
In all forty-three (43) items on the list are likely to be affected by the review.
They are as follows:
Poultry, rice sugar, pasta, spaghetti, noodles, macaroni palm oil-crude and refined aluminum finished product (roofing sheets) toilet paper, facial tissue and towel chocolate, Portland cement, mosquito coil, vehicles, ceramic tiles aluminum products, cartons, boxes of paperboard cases of corrugated paper matchet, water, soft (including, mineral & aerated with sugar (including., sweetened).
Other are plastic, tile cement, textiles, iron steel bars & rolls forged, fruit juices, tomato paste & ketchup, cement paper bags, furniture & parts toilet soap, laundry bar soap, detergent, washing powder, lubricating oil, alcoholic beverages, soft drinks and carbonated drinks, flexible packaging material, biscuits, cigarette, pharmaceuticals, machinery and equipment, plants, all mining items, toffees & chewing gum, dairy products, animal products, leather and articles of leather, headgear, arms and ammunitions, explosives and electrical machinery & equipment, parts.
After various stakeholder engagements, President Nana Addo Dankwa Akufo-Addo has directed that the reversal be suspended until broader consultations are held. Read Full Story
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