Suspend tax stamp or we close down – Businesses

Businesses say they will be left with no option than to close their factories and make their workers stay home if the Tax Stamp is implemented in its current state from March 1, 2018.

The Ghana Revenue Authority is currently running commercial and sensitization exercises on the Tax Stamp.

But there is uncertainty surrounding the policy as key businesses are calling for its immediate suspension.

According to them, the current state of implementation is poor and need to be readjusted.

They are warning the introduction of the tax stamp will add to the cost of doing business thereby escalating the prices of goods.

The passage of the Excise Tax Stamp Act, 2013, (Act 873) made it compulsory for companies that manufacture or import bottled beverages and water to affix the tax stamps on their products before they are allowed into the market.

Companies are being charged to acquire the machines to aid the process.

The machine is estimated to cost between $100.000.00 – 500.000.00, depending on the size of operation.

Some businesses say the cost of procuring the machine is expensive.

The Executive Secretary of the Food and Beverages Association of Ghana, Sam Aggrey told Starr Business’ Osei Owusu Amankwaah, many bottling companies will have no option than to collapse if the tax stamp remains in its current state.

“We have two companies just waiting to deplete their stock and they will fold up. They have already told their workers. They say, they can’t afford the machine,” Mr. Aggrey said.

The Ghana Freight Forwarders Association also say the move will prolong its operation at the port; making them lose money.

“In the port, anything that extend time increases cost and if cost is increased you and I will be buying it in the market,” said the President of the Ghana Freight Forwarders Association, Nana Ofosu Appiah.

The Executive Secretary of the Importers and Exporters Association of Ghana, Sampson Asaki and the President for the Ghana Union of Traders Associations (GUTA), Dr. Joseph Obeng say the current state of the tax stamp will require that products are stamped in the origin of import. This they believe will make their operation cumbersome.