Prices Of Pharmaceuticals To Shoot Up As GRA Moves To Scrap Port Clearing Discounts

Fear has gripped the Ghanaian pharmaceutical industry over possible hikes in the importation of their products and may become too expensive to buy.

This fear comes in the heels of the recent decision by the Ghana Revenue Authority (GRA) to scrap port clearing discounts for some 32 categories of items at the ports, including pharmaceuticals. The 50% discount on Benchmark Values of these 32 imports will consequently be removed as part of the GRA’s move to raise more money for the struggling Akufo Addo government.

On November 11, 2021, the GRA wrote to Finance Minister, Ken Ofori-Atta to inform him of the decision to remove the discounts starting Monday 15th November. The letter had referred to an earlier letter on September 27, 2021, which had discussed the move.

“We write to inform you that following discussions on various fora, it has been agreed that discount on some commodities currently being enjoyed should be reversed to achieve revenue effect. To this end, November 15, 2021, is, therefore slated for the effective date for implementation of the removal of the benchmark values on some selected items,” the letter signed by Commissioner-General Rev. Ammishaddai Owusu-Amoah.

Other items similarly affected are, sugar, noodles, palm oil, roofing sheets, toilet paper, facial tissue and towel, chocolates, Portland cement, clinker and mosquito coil.

Also included vehicles, ceramic tiles, aluminum products, cartons, textiles, fruit juices, among others.

The Ghana Union of Traders Association has warned that the move will be suicidal. Its President, Dr. Joseph Obeng, warns the move will cause unemployment. 

“Any attempt to remove this good policy of the government that brought relief will be suicidal for the state because it will not only collapse business but also cause an unbearable rise in prices of goods and services beyond the reach of consumers, especially, low-income earners and the unemployed.”

However, the Akufo-Addo government has become desperate as debt swallows the economy and investors increasingly become wary of lending to Ghana. There is even talk of returning to the IMF for another bailout.

In its bid to weather the conundrum that the country finds itself in, the government is said to be gearing up to introduce more taxes in the upcoming budget statement for 2022. The move to remove the clearance discount appears to be one of many desperate measures by the government to get its bearing about itself.