Passing on Cost of Tax Stamp to Producers Will Increase Prices

The Association of Ghana Industries (AGI) has appealed to the Ghana Revenue Authority (GRA) to continue to bear the cost of the implementation of the tax stamp policy.

The call comes at a time when the GRA is extending the scope of the policy by affixing the stamp on other products already under the policy such as carbonated drinks and alcoholic beverages.

The GRA enforced the use of tax stamp on the first of March this year and has since been bearing the cost of the stamps to prevent an increase in the cost of production for manufacturers in the country.

According to the GRA, over the years considerable revenue has been lost through illicit trade.

Also under declaration of quantities of these goods, both imported and locally produced has led to significant loss of revenue and therefore the need for the implementation of the excise tax stamp policy.

The excise tax act specifies that excise tax stamps shall be affixed on all selected excisable products before their entry into the market.

The Ghana Revenue Authority has however hinted that it may in the future pass on the cost to producers.

In an interview with Citi Business News, the CEO of the Association of Ghana Industries, Seth Twum Akwaboah said it is crucial that government continues to bear the cost of the tax stamp.

“When the GRA first mentioned that they were going to roll out a tax stamp policy we had concerns about the cost of it and the impact it would have on our businesses. This was however addressed when they later told us that they will bear the cost of the stamps”.

“The GRA has mentioned that they are bearing the cost for now so what we want to tell them is for them to continue to do so and not pass the cost onto us later on”.

Affixing facilities have been set up at Tema, Aflao, Takoradi, Elubo, Akanu and Kpoloo.