Ghana’s business community is kicking against any plan by government to introduce tax stamps. They argue, the move will increase the cost of doing business if implemented in its current state.
The policy requires that specified excisable products are affixed with tax stamps with specific features designed and supplied by the Ghana Revenue Authority before they are delivered ex-factory, cleared from any port of entry and presented for sale.
The business community boycotted the launch of the tax stamps last year after stiff opposition. But there are rumors government will go ahead to implement the policy early this year.
According to the Association of Ghana Industries (AGI), the current state of the policy will slow their operation.
The CEO of AGI, Seth Twum Akwaboa, told Starr Business’ Osei Owusu Amankwaah that even though they are for the arrangement, some issues need to be cleared first.
“The current state as it is; as far as the tax stamp is; if it is implemented the way it is most of the industrial operators have complained that it will slow down their production process,” he said.
He added that, “Some of them have very fast production lines, so if you introduce the tax stamp; which is physically stamped; it is not coming as a leaser print it will slow down the line. So that is what government is looking into. I believe that it is part of the reason why there have been so much delay.”
The Ghana Union of Traders Association (GUTA) says there are a lot of pending questions to be answered.
The Public Relations Officer of the Association, Joseph Paddy asked;
- Who Pays for the cost of the tax stamps after government absorb the cost for a year?
- Who pays for the cost of offloading and unloading of the goods for authorities to stamp each and every one of them?
- Who pays if there are any damaged goods during the offloading and unloading?
“These are some of the question we are asking government,” Mr Paddy said.
Mr. Akwaboah says their protest is to forestall any negative repercussion that will come with the policy.
“Tax Stamps is being implemented in other countries, so it is not really new. But the mode of implementation is what we have to look at critically otherwise there will be unintended consequences of a policy you want to implement,” he said.
Source: Ghana/StarrFMonline.com/103.5FM/Osei Owusu Amankwaah
