Commodity prices will increase by 8%


Economic news for Wednesday February 2, 2022

Source: RNG

2022-02-02

IEAG Executive Secretary, Samson Awingobit Asaki

Commodity prices will rise between 8 and 12 percent from February if the Ghana Revenue Authority (GRA) implements the amended Value Added Tax (VAT) rate, the Importers and Exporters Association has predicted. of Ghana (IEAG).

Mr. Samson Awingobit Asaki, Executive Secretary of IEAG, said that “Ghanaians will experience increases in commodity prices if the GRA implements the new VAT which shifts business from a flat rate from 3% plus the 1% COVID-19 levy to a whopping 19.2 percent.

Mr. Asaki, in an interview with the Ghana News Agency in Tema, explained that there was a need for the GRA and other relevant state institutions to educate the public on the amended tax component to prepare them for the implications of its Implementation.

He said that even though the standard VAT should not exceed 12%, according to the amendment, Ghana’s VAT increases to 19.2% for businesses with a capital of GHC 500,000.00.

According to him, the amendment would affect goods which had already cleared customs in 2021 and have not yet been sold, adding that economic operators and retailers would have no choice but to pass on the difference to consumers, hence the need for the GRA to raise public awareness.

Mr Asaki said the amendment, which was published in the Official Gazette on December 31, 2021, was to be implemented in February, saying the deadline was short and consumers would be in shock when prices rose without any appropriate education.

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