[ 2016-07-08 ]

GRA duty drawback payments
The Ghana Revenue Authority (GRA) has told Citi
Business News it has commenced the payment of
outstanding duty drawbacks due some exporters and
manufacturers.

According to the GRA, twenty-seven (27) exporters
and manufacturers have had their documents
approved by the Commissioner General hence the
approval of the payment.

Speaking to Citi Business News a Revenue Officer
at Customs Division at the GRA, Ebenezer T. M.
Ayettey said qualified exporters and manufacturers
can visit the duty drawback section of the GRA for
their cheques.

“We have received the cheques from the head
office and have commenced the payments as we
promised. So far only one person that has come for
his cheque, some have also called indicating that
they will come for it. This is for only those 27
who have their documentation complete and we have
satisfied ourselves that they indeed exported.”

Mr. Ayettey added,“there are others we have
sent their documentation for auditing and we are
awaiting the outcome. Remember we will only
proceed if the auditors do not raise any queries
on the documentation.”

Citi Business News understands that with the 27
exporters and manufacturers due for payment, the
GRA is making payments to the tune of a little
above 2 million cedis.

Majority of exporters are owed duty drawback

A research conducted by the GCCI has revealed
that on average, government owes about GH¢ 456,
289 per individual company.

The highest amount owed to businesses is about
1.7 million Ghana cedis and the minimum amount is
about 500 cedis.

The research also showed that on average payments
could take about 10 months depending on follow
ups.

In extreme cases, however, payment of refund
could be made after 2 years while the shortest
possible period was 5 months.

Importers threaten to sue GRA & Finance Ministry

The announcement to commence payments comes after
some exporters and manufacturers through the Ghana
Chamber of Commerce and Industries,GCCI,
threatened to hurl the GRA and the Ministry of
finance to court over what they claim are
deliberate delays in the payment of their tax
refunds under the duty drawback scheme.

Some of them who have been speaking to Citi
Business News say the process which should
normally last six months, extends to well beyond a
year in some instances.

GCCI asks members to exercise restraint

Despite the finding, the Ghana Chamber of
Commerce and Industry, is impressing on its
members who have been affected by the undue delays
in the payment of their duty drawback claims to
exercise restraint as the Chamber pushes for their
concerns to be addressed.

The CEO of the GCCI, Mark Badu Aboagye tells Citi
Business News of negotiations to get the issue
rectified.

“I do not think that is the option, in fact, we
need to explore other options before going to
court. It is another option but let us explore to
the fullest this particular option which we have
started very well; probably the next time we come
around we will come with tangible results of those
who have been able to get their refunds within the
shortest possible time,” he said.

Mr. Aboagye who was speaking on Business Today,
however, intimated that affected businesses will
be compelled to demand interests if the GRA does
intervene to reverse the trend.

“Interestingly they are not giving us interests
on the monies that they are being delayed…We are
asking that if these things should continue, then
we are going to ask for interests on the monies
that are being held up with them,” he further
observed.

Drawback is the refund of import duties and taxes
paid on imported materials that are used as inputs
in the manufacture of goods, which are then
exported.

Ghana has had a duty drawback regime in place
since 1993 after it liberalized its import and
export trade.

This was with the view to make it easier for
domestic manufacturing firms to source scarce or
unavailable inputs from other countries at
competitive prices for the manufacturing of goods
for exports.

Source - citifmonline.com

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