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Business & Finance | Feb 20, 2018

Top Local Manufacturers Threaten To Withdraw Products Due To Tax Stamp Policy

JoyBusiness
Top Local Manufacturers Threaten To Withdraw Products Due To Tax Stamp Policy

Food and Beverage Association of Ghana (FBAG) is threatening to withdraw all locally manufactured products from the market if the government goes ahead with the implementation of the Tax Stamp Policy on March 1st.

Local manufacturers in Ghana are worried that the implementation of the Tax Stamp Policy has the potential of collapsing local manufacturing companies.

Executive Secretary of FBAG, Samuel Aggrey, said all attempts to draw the attention of the government on their concerns have proved futile, hence the need to take drastic steps to drive home their concerns.

"Active players who are going to be heavily impacted by the project had oftentimes pointed out difficulties inherent in it if the mode is allowed to roll-out the way it is to be done as stated by project implementers," he stated in a media engagement.

Mr Aggrey said, “It must be stated we are not against the Tax Stamp Policy, but the methods and process by which it is being currently introduced ends up adding total hardship, undue cost which makes it completely counterproductive”

According to FBAG, the Excise Tax Stamp as a Port Process has the potential of resulting in a 200 percent intrusive examination.

The examination, they claim, will set aside most of the Risk Management and profiling dividends that should otherwise accrue to the complainant trader as stated in the Trade Facilitation Agreement.

The Excise Tax Stamp Act, 2013 (ACT 873) was passed by Parliament in December 2013 with the aim of helping the Ghana Revenue Authority (GRA) enforce the affixing of Excise Tax Stamp on specific excisable goods before they are delivered ex-factory, cleared from any port or presented for sale at any commercial level in Ghana.

The ACT subsequently received presidential assent in January 2014.

The Excise Tax Stamp Act is definitely not an introduction of a new tax. It rather requires that Excise Tax Stamps with traceable and security-enhanced features on specified excisable commodities in order to serve as preliminary evidence of the payment of the required duties and taxes and to provide an audit trail for tracing importers and manufacturers of counterfeited goods.

Excisable Products expected to be affixed with the stamps include Cigarette and other Tobacco products, alcoholic beverages, non-alcoholic and carbonated beverages, bottled water, textiles and other goods determined by the minister of finance.

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