Attempts to remove 50% Benchmark Value Reduction will be ‘suicidal’ – GUTA

• GUTA has stressed that any attempts to remove the 50% Benchmark Value Reduction will be 'suicidal'

• The Union says it is not ready to accommodate further burden on the trading community

• The benchmark values are references that customs use in determining standards on imports

The Ghana Union of Traders Association (GUTA) has stressed that attempts to remove the Benchmark Value Reduction of 50% on some selected imported items will adversely impact the trading community.

The benchmark values are references that customs use in determining standards on imports meant for clearance at the country’s ports.

Reacting to the move, President of the Union, Dr Joseph Obeng, described the attempts as ‘suicidal’ on the trading community which he says is already grappling to survive in the midst of a pandemic.

“It has come to the notice of the Ghana Union of Trades' Associations (GUTA) that the government intends to remove the 50% reduction of the benchmark value which was introduced a few years ago to alleviate the plight of the trading community, as well as save businesses in the country from imminent collapse,” the statement signed by the GUTA president read in part.

“At this time of numerous global economic challenges brought about by the pandemic, seriously affecting businesses all over the world and any attempt to remove this good policy of the government that brought relief will be suicidal for the state because it will not only collapse business, but also cause an unbearable rise in prices of goods and services beyond the reach of consumers, especially, low-income earners and the unemployed,” it added.

The Union, therefore, indicated that it is not prepared to accommodate an additional burden on them as they have had to deal with the introduction of new taxes and increments in the value-added tax by government.

“We, therefore want to be categorical clear, that the trading community is NOT prepared to accept any additional burden or layer of cost of doing business, especially, as there have already been introduction of new taxes and increments in the value added tax, which have been accommodated by these same suffering businesses in the country.”

“It is important to state that the reduction of the benchmark value is the only lifeline policy left for businesses, especially at this trying time, and need to be maintained,” the statement concluded.