Tax stamp policy will stay – Ken Ofori-Atta

Lorlornyofm
By Lorlornyofm February 27, 2018 12:59

Tax stamp policy will stay – Ken Ofori-Atta

Finance Minister, Ken Ofori-Atta has given the strongest indication that government will not review or withdrawal the excise tax stamp policy.

The excise tax stamp law was passed by parliament in 2013 to halt tax evasion in the manufacturing sector.

The policy will affect alcoholic, beverage and water bottle producers, among others.

However, the policy, which is scheduled to be implemented on March 1, 2018 has been met with some opposition from the Coalition of Key Business Associations in Ghana.

The association is kicking against the policy, stating that it will increase their cost of production since manufacturing companies are required to purchase the machines that will help to emboss the tax stamp on their products.

But Speaking to journalists at a press conference, Finance Minister, Ken Ofori-Atta maintained that the policy will not be reviewed or scrapped.

He argued that the policy was passed to cure revenue leakages in the economy as well as help government accurately measure the amount of goods produced in the manufacturing sector.

“This law was passed in 2013, so for interested manufacturers, in terms of getting ready to do it, let the person not think that this government just came in and brought the law two or three months ago, “he said.

He stated that it is unfair for some players in the manufacturing sector to oppose the policy on grounds of lack of preparation.

“So from 2013 to now, what have you (manufacturers) being doing about it,” he asked, adding that, governments have had adequate engagements with key stakeholders on the roadmap to implement the tax.

Mr. Ofori-Atta urged stakeholders to look for best practices in Europe and other parts of the world on the implementation of such policies.

He maintained that the cost of the machine used in implementing the policy is always borne by the manufacturing company.

“You can do a research in other western countries and find out who pays for these machines. And then you can question how it is being done in Ghana. Why are we even doing it in the first place, because people are evading taxes,” he stressed.

Meanwhile, the Commissioner-General of the Ghana Revenue Authority, Kofi Nti who was also at the conference has explained that the tax stamp policy has a recovery component in it that will help the manufacturing sector recoup cost incurred in implementing it.

He warned that companies that flout the law will be penalized.

Source: citifmonline.com

Lorlornyofm
By Lorlornyofm February 27, 2018 12:59
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