The Ghana Revenue Authority (GRA) has responded to concerns raised by the Importers and Exporters Association of Ghana over a possible 12 percent increase in the prices of some commodities should it go ahead to implement the amended Value Added Tax (VAT) rate.
According to the importers and exporters association, the amendment of the VAT which was gazetted on December 31, 2021, will see the business community move from paying a three percent flat rate plus one percent COVID-19 levy to paying VAT of about twenty percent.
They subsequently warned that the situation would lead to an increase in the prices of some goods.
The Importers and Exporters Association of Ghana had earlier warned that consumers may have to pay an increase of about eight to twelve percent for some commodities.
They further lamented the lack of stakeholder consultation from the GRA with them with regard to this new amendment.
In an interview with Citi Business News, General Secretary of the Importers and Exporters Association of Ghana, Samson Asaki Awingobit said the Ghana Revenue Authority has reached out to them for stakeholder consultation on how best to implement the VAT.
“We strongly believe that, with this current flat-rate amendment, it has a cost element between eight and twelve percent which was not well-thought-out. Already the prices of goods have gone high, inflation rate has gone up. Just this morning we are reading that fuel prices will go up by thirty pesewas or so and transportation will be increased by thirty percent. All these become a cost element, and so I strongly believe government should not be in a haste to be influencing everything just like that. The public out there is crying, and so we have called that if anything at all the GRA should suspend that program and let us all come to a round table and discuss the issue. They have seen the needful and have said they are going to call us for a discussion, so we look forward to their call”.
Source: Citibusinessnews