The Food and Beverages Association of Ghana (FABAG), has called on the government through the Finance Minister and Minister of Trade and Industry to immediately halt any moves by the Ghana Revenue Authority (GRA) to introduce any new digital machines for the Excise Tax stamp system to replace the existing ones.
In a news brief copied to The High Street Journal, FABAG said it’s satisfied with the current machines they have installed in their facilities to facilitate their compliance effort towards the successful payment of the Excise Tax stamp.
The statement said the already existing machines are running smoothly without any complains from the GRA in the domain of reported losses of revenue due to any identified system deficiencies, hence no need to add more machines.
It said most players acquired their machines as recent as 2020 and any replacement at this time will mean that GRA is not bothered about the heavy financial burden that one has to go through to enable it pay its due to the State or Government.
“The long standing working capital inadequacy challenges is going to be compounded by any forced introduction of a new machine,” it added.
Besides, “manufacturers are yet to recover the cost incurred in the procurement and installation of the machines they were made to buy to facilitate compliance with the Excise Tax Stamp payment as a result of the implementation of the Tax Stamp Act 2013 ( Act 873),” it said.
FABAG said the introduction of the new machines is seen to be a means of a monopoly as the intermediary between the GRA and the manufacturer in the performance of the statutory functions of revenue mobilization by the GRA.
The statement continued to say that while it is still not so clear whether industry will be making any gains to minimize the current burden caused by the cedi depreciation, GRA is trying to multiply manufacturers woes of working capital deficiencies amidst heavy loan interest and foreign losses by introducing another financial commitment turbulence.
“We can not suddenly be buffeted with issues of buying new machines, installation, caliberation and training of our staff from now to the Christmas season, Let us be reminded that it is barely left with four months for the year to end. As we understand, aside the cost of the new machines, the average factory will spend millions of United States Dollars each year on this new system,” it added.
It appealed to government to ensure that this initiative is implemented with high level of sensitivity, however, businesses in Ghana are currently reeling under tremendous pressure from forces buffeted from various angles.
