The situation is expected to lead to possible shortages and eventual increase in prices, if authorities fail to step in.

The warning is the latest from the Food and Beverage Manufacturers’ Association of Ghana.

It also comes after the closure of two companies; Aqua Fill and Multi pac producers of bottled water and fruit juices respectively.

The Executive Secretary of the Association, Samuel Aggrey tells Citi Business News the members have been overburdened with the latest directive hence the action.

“Unfortunately government is not heeding to that and is still standing on its position expecting that people should invest between one hundred and fifty thousand and millions of dollars to get these machines installed,”

“…If I don’t have the resources to install those machines then I will be found wanting by the law. The two companies that have shutdown have done so until they have their way clear. I can tell you that others are waiting to follow suit because no company would want to be found wanting.”

Meanwhile Mr. Aggrey has also not ruled out possible increase in prices of some products due to the cost in fixing the stamps at the designated centers.

“Because we don’t have the machine, you need to transport your wares from you factory wherever you are in the country to Tema for them to fix the stamps for you. When you get to Tema, the facility can only accommodate a 20 footer container that can only work for about 6 hours a day. So you can just imagine the number of containers that will be lined up to get this facility to get their stamps affixed. So if their going by rationing, the competition that will be created between these industries will be huge,” he lamented.

The enforcement of the excise tax stamp has been in operation since March 1, 2018.

According to the Ghana Revenue Authority, the decision is to deepen compliance with tax payments and combat tax evasion.

The development has also been viewed by some as means by the government to shore up its revenue following the revenue shortfall it recorded in 2017.

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Tax stamp: Two companies shut down, more to follow appeared first on Citi 97.3 FM - Relevant Radio. Always.

This is the indication from a Deputy Finance Minister, Kweku Kwarteng.

He argues that government can no longer hold back the implementation of the Excise Tax Stamp Policy due to setbacks from affected businesses as the country risks losing revenue due to under declaration.

The Food and Beverage Manufacturers’ Association have threatened to shut down their businesses if government fails to review the current form of implementing the tax stamp.

But speaking to Citi Business News on the matter, Mr. Kweku Kwarteng said government will not withdraw the decision to implement the policy.

“If your products are found on the market and they are not stamped, they will be seen as unlawful products, they will be seized and the manufacturers and importers will be investigated and sanctioned.”

Mr Kwarteng however commended businesses that have so far complied with the policy ahead of its implementation

“I’m glad to say that some tobacco and other products on the market have already got the stamps ahead of the implementation date, we are grateful to them for complying with the law.”

He further stressed that government will not relent in its decision to implement the policy.

“There are some who are still hoping that they can protest and do all kinds of things so that government will abandon this as happened in the past. We will not abandon this policy, our determination to carry through a law that has been passed by parliament is total and we will implement the law to benefit revenue mobilization in the country”.

Goods expected to be affected by the excise tax stamp include cigarettes and other tobacco products, bottled or canned alcoholic beverages and nonalcoholic carbonated beverages as well as bottled water.

–

By: Anita Arthur/citibusinessnews.com/Ghana

The post Gov’t fails to yield to pressure over tax stamp appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to them, they have not been properly integrated into the implementation processes hence the need to address their concerns before the implementation of the policy.

“Our engagements with government to reconsider its position if it comes to the tax stamp, have all yielded no results but rather the government wants to go in tandem. So we ask ourselves are we ready to really affix the tax stamps? If not, then what are we going to do on the first of March?” Executive Secretary of the Food and Beverages Association of Ghana, Samuel Aggrey queried.

The excise tax stamp is scheduled to take effect on 1st March, 2018; barring any last minute change.

At a press conference to voice out their displeasure, Mr. Aggrey further said the beverage industries are ready to withdraw their services and close down their businesses until their concerns are addressed.

“If GRA or government insists that those who have not affixed the stamps on their products should withdraw them from the market, industries are ready to do that. But if we want to be smart enough, then we will ask the implementers to withdraw and as a matter of urgency suspend this tax stamp implementation,” he declared.

Although the business associations stated clearly they are not against the tax stamp policy, the argued that the method being introduced will only end up adding undue cost to their operations which will eventually makes production completely counterproductive.

About the Excise Tax Stamp

The Excise Tax Stamp Act 2003 (Act 873) was passed by the parliament of Republic of Ghana in December 2013, ostensibly to enable the Ghana Revenue Authority (GRA) enforce the affixing of Excise Tax Stamp on specified excisable goods before they are delivered and cleared from the ports for sale.

The tax stamp received presidential assent in January 2014.

–

By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

The post Beverage manufacturers want tax stamp suspended appeared first on Citi 97.3 FM - Relevant Radio. Always.