AGI raises red flag over tax stamps

Mr Seth Twum Akwaboah (inset) CEO of AGI addressing the breakfast meeting

Mr Seth Twum Akwaboah (inset) CEO of AGI addressing the breakfast meeting

The Association of Ghana Industries (AGI) has reiterated calls on government not to introduce charges on the tax stamps for importers and manufacturers affected by the tax stamp policy.

Mr. Seth Twum Akwaboah, Chief Executive Officer of AGI, said that any charges on the tax stamp would only increase cost of doing business and adversely affect the production capacity of manufacturers.

“We are happy that currently government has absorbed the cost of the tax stamps. We hope that the situation does not change and government continues to bear the cost. We have undertaken some analysis on the investment manufacturers have had to do acquiring tax stamp affixing machine and we recorded figures amounting to millions of Ghana Cedis.  A change in decision for manufacturers and importers to pay would add to the already high cost businesses encounter in their operations,” he stated.

Mr. Akwaboah was speaking in Accra yesterday at the Fourth Quarter CEO’s Breakfast Meeting organised by the Ghana Investment Promotion Centre.

It was on the theme “Implementation of Tax Stamp Policy: Perspectives, Benefits and Experiences.”

As with every new policy, he said despite the initial concerns by the AGI, there was strict compliance among members adding that “because the affixing machine is capital investment and companies did not make budget allocations for, it was a struggle but some raised the needed funds to acquire theirs.”

He said the AGI support the implementation of the policy as it would ensure that the right duties on goods were paid to the state and helps address challenges with fake and pirated products on the Ghanaian market.

Technical Advisor of the GRA, Kwesi Nyankyira, said the roll out of the policy has enabled the Authority to identify some entities involved in the production and importation of fake products in the country and were currently being processed for prosecution.

He said the tax stamp policy was to help in the detection of smuggled or diverted goods which were dumped on the market, resulting in significant revenue losses to the government and put legitimate brand businesses at a competitive disadvantage.

The tax stamp, he explained would improve inspection, verification, monitoring and enforcement procedures towards increasing revenue for national development.

By Claude Nyarko Adams

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