Government must do all it can to give the necessary incentive to manufacturers, exporters and importers in the country.
This was disclosed by Hon. Frederick Alipui, the Chairman of Accra Regional Chamber of Commerce at a sensitization workshop on Wednesday, January 27th 2016 to present to stakeholders and concerned companies the duty drawback scheme in Ghana. Duty Drawback which is a refund on tariff for the import of raw materials which are re-exported in their same form or re-exported with some level of value addition has been in place since 1993 in Ghana. However, the operation of the scheme is fraught with challenges defeating the purpose for which it was put in place. These challenges are what the Ghana National Chamber of Commerce in collaboration with Association of Ghana Industries and Ghana Institute of Freight Forwarders and with funding from BUSAC sought to address.
The CEO, Mr. Mark Badu-Aboagye who gave an overview of the duty drawback project indicated that the procedures companies especially importers and exporters have to go through in order to access their refund is bedevilled with excessive bureaucratic processes. As a result, companies get fed up along the process of getting their refund. Hence, the need to streamline the procedures so as to shore up the working capital of firms in the discharge of their operations. Sadly, most companies that are due for drawback do not even have any idea of the existence of this scheme, he disclosed.
Participants, who gave their support to the project indicated that the 12 month within which the drawback can be accessed is too long a time as inflation, interest rate and depreciation would have reduce the value of companies fund. They also suggested that since Ghana Revenue Authority (GRA) requires original documents in order to access the drawback, GRA should certify photocopies of the documents for companies to use for tax filing purposes. Participants also called for flexibility on the part of the GRA as to the implementation of the scheme as certain companies import raw materials and sell the raw materials to other companies who add value before exporting to other countries. Getting the refund in this instance becomes difficult and so there is the need for clarity from the GRA as part of the recommendations given to government. Participants asked the GNCC to demand from the GRA the details of the drawback calculations.
For details on the Duty Drawback Scheme and how to benefit from the scheme, Companies should kindly contact the Ghana National Chamber of Commerce