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"I think we really have to think about it very well. Because … applying a 50% discount on all goods is problematic. Because if we look at the CET [ECOWAS Common External Tariff], the CET has different tariff ranges to accommodate certain industries in the sub-region – we have local capacity to produce these products and, therefore, they need to be slightly protected.
"There are those for whom we have no local capacity at all, so if you increase the tax so much, you just make the product expensive in your market. So they took all these factors into account when determining the tariff bands, "said Seth Twum-Akwaboah, General Manager of AGI.
According to him, the lump-sum application of the tariff reform goes against the desire of the government to encourage local production.
"Imports will become much cheaper than manufactured goods, which means that those who produce, those who manufacture manufactured goods in the country and employ people will become traders," he said.
When manufacturers become traders to benefit from the reduction in import duties, the economy will suffer, he said.
But GUTA chairman Joseph Obeng disagrees, saying the reduction in the reference value is not limited to finished products.
"It goes all the way to raw materials. So, the status quo remains the same. If you want imports to be banned, you have to be bold and tell the government to ban the import, but is it possible? This can not be done because the import is very necessary. It's only helping what we generate locally.
"It's not possible to make everything, you have to see where you have a competitive advantage and produce it. The rules should not be folded for you alone, "he advised.
The government has recently announced that the reference value of import duties has been reduced by 50%, while that of vehicles alone has been reduced by 30%.
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