Removal of 50% benchmark value will protect local businesses – Exporters and Importers told

Member of Parliament (MP) for the Kwadaso Constituency in the Ashanti Region, Dr. Kingsley Nyarko, has advised the Importers and Exporters Association not to oppose the possible removal of the 50% benchmark value.

He asserts the removal of the benchmark value will only strengthen Ghanaian businesses and urged them to support this if it is presented in the 2022 budget presentation.

“I heard the 50% benchmark value might be scrapped and I believe this will be good for Ghana. If the benchmark value is scrapped, local businesses will be protected as the patronage of local goods and services will increase. The ripple effect of this is that the cedi becomes stable and can compete against the dollar and other foreign currencies,” he told Don Kwabena Prah on Happy98.9FM’s Epa Hoa Daben Political talk show.

He noted the 1 District 1 Factory (1D1F) was introduced to reduce exports by making Ghana self-reliant and insists the removal of the 50% benchmark value is part of government’s efforts to make this dream a reality.

“I hope the Ghana Union of Traders Association (GUTA) and Importers and Exporters will understand this. The west introduces subsidies for domestic factories and that’s why they produce at cheaper prices and compete in the international market. Ghana wants to do same and that is why the 1D1F policy was introduced,” he stated.

The President of the Ghana Union of Traders Association, Dr. Joseph Obeng, had earlier reiterated that any intention by the government to scrap the 50% Benchmark Value policy at the ports “will be suicidal”.

In a press statement, Dr. Obeng expressed that the policy has brought relief to the trading community, sanity into the system, and eased tension and agitations amid the impact of the coronavirus on cross-border trade.

“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,” he warned.

Source: Modern Ghana