Tax Stamp Policy: more companies to shut down, possible increase in prices

Many companies are likely to shut down to avoid falling short of the law after government have implemented the excise tax stamp policy which took effect from March 1, 2018.

These companies for the fear of being sanction by Government over the tax stamp policy will have to shut down operations in order to get the necessary machines installed.

Two companies, Aqua Fill and Multi pac producers of bottled water and fruit juices respectively have already shut down operations.

Reacting to the implementation of the tax stamp policy in a radio interview, the Executive Secretary of Food and Beverage Manufacturers’ Association of Ghana, Samuel Aggrey said:

“Unfortunately government is not heeding to that and is still standing on its position expecting that people should invest between one hundred and fifty thousand and millions of dollars to get these machines installed.”

According to him If these companies don’t have the resources to install the machines then they will be found wanting by the law.

Tax Stamp Policy

“The two companies that have shutdown have done so until they have their way clear. I can tell you that others are waiting to follow suit because no company would want to be found wanting,” he added.

Meanwhile, Mr. Aggrey has also not ruled out a possible increase in prices of some products due to the cost in fixing the stamps at the designated centers.

“Because we don’t have the machine, you need to transport your wares from you factory wherever you are in the country to Tema for them to fix the stamps for you. When you get to Tema, the facility can only accommodate a 20 footer container that can only work for about 6 hours a day. So you can just imagine the number of containers that will be lined up to get this facility to get their stamps affixed. So if they are going by rationing, the competition that will be created between these industries will be huge,” he lamented.

According to the Ghana Revenue Authority, the decision is to deepen compliance with tax payments and combat tax evasion.

The development has also been viewed by some as means by the government to shore up its revenue following the revenue shortfall it recorded in 2017.

www.primenewsghana.com/ Ghana News