Proposed new tax stamp machines to compound burden of businesses — FABAG warns GRA
THE Food and Beverages Association of Ghana (FABAG) has called on government 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.
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The association argued that replacing the current machines would impose undue financial burden on manufacturers who were 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).
In a release issued and signed by the Executive Chairman of FABAG, Rev. John Awuni, the association explained that the current system was functioning efficiently, with no registered or known complaints from industry players or the GRA regarding revenue losses or system deficiencies.
It said most players acquired their machines as recently as 2020 and any replacement at this time will mean that GRA was not bothered about the heavy financial burden that one has to go through to enable one to pay his due to the state.
“The long-standing working capital inadequacy challenges are going to be compounded by any forced introduction of a new machine.”
“We will interpret any arrangement to replace our current machines as a calculated scheme to exploit the manufacturer rather than making payment of the stamp convenient,” he said.
The cost of payment becomes the middleman's earnings; and since the GRA, by enforcement directives, creates an inelastic demand for the machines (digital printers) and the special ink, the GRA really may be seen as an exploiter in the compliance chain,” it said.
“FABAG hereby notifies the Ghana Revenue Authority (GRA) that its members are 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 release added.
Foreign exchange losses
It further explained that businesses have been suffering heavy foreign exchange losses this year due to the depreciation of the cedi.
“We cannot suddenly be buffeted with issues of buying new machines, installation, calibration 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 from the cost of the new machines, the average factory will spend millions of United States Dollars each year on this new system,” the release said.