AGI happy with the implementation of the tax stamp
The Association of Ghana Industries (AGI) Thursday expressed its satisfaction at the pace of the implementation of the Tax Stamp.
The group has also applauded the Government for its open door policy and continuous engagement with the business side on the new policy and pledged its cooperation towards ensuring full compliance by the end of November.
Mr Seth Twum-Akwaboah, the President of AGI, said this at the Fourth Quarter edition of the Breakfast Meeting series, organised by the Ghana Investment Promotion Centre (GIPC) in Accra.
The meeting was under the theme, “Implementation of Tax Stamp Policy: Perspective Benefit and Experience”.
He urged the Government not to review its decision of giving the tax stamps for free to business operators to emboss on the various products, saying, “It will be an additional cost to business and make cost of production high”.
Mr Akwasi Yankyera, an advisor to the Commissioner of the Ghana Revenue Authority, said over the years, considerable revenue had been lost through illicit trade.
This is because illegal operators smuggled tobacco, spirits and other alcoholic beverages into the country as well as indulged in the sale of counterfeited products.
“What is more, the under-declaration of quantities of these goods – both the imported and locally produced – has led to significant loss of revenue,” he said.
Goods in transit, particularly, cigarettes which are often diverted or smuggled back into the country and sold on the market are difficult to detect”.
“These illegal activities cause significant revenue loss to Government and also put legitimate brand owners and businesses at a competitive disadvantage.”
Mr Yankyera explained that the counterfeit products were dangerous to consumers as these goods were typically of much lower quality and may contain poisonous constituents, which impaired the health of consumers.
He stated that the use of digital tax stamps on selected excisable products, such as cigarettes and alcoholic beverages had, therefore, been identified as an effective means of accounting for all goods and raking in more revenue.
Giving an update of the implementation he said, some of the challenges the policy faced were cost, education and perception of the policy as a new type of tax.
The directive took effect on March 1, this year amidst complaints especially from members of the Food & Beverage Association of Ghana.
The GRA, as part of measures to increase compliance in the collection of Excise, launched the Tax Stamp Policy, which emanates from the Excise Stamp Act, 2013 (Act 873).
Tax Stamps are small stickers with security features supplied by government to some manufacturers and importers to be affixed to their products before they are released onto the market.
The presence of the Tax Stamps on a product, therefore, provides enough guarantee of product authenticity.
Source: GNA