Members of the Federation of Associations of Ghanaian Exporters have requested the the VAT Secretariat to consider an outright exemption of indirect taxes on packaging materials. This is because it is difficult for exporters to raise and play the 10 percent indirect tax which will be refunded monthly after inputs have been cleared. The members said an additional capital will be needed to pay the taxes. These concerns were raised at a seminar on the re-introduction of the VAT and how it will affect exporters. The members are worried about human situations like frustrations in the course of claiming the refund and hoped the VAT Secretariat would addres the issue. The Executive Secretary of the Association, Mr. Gaddiel Quansah, recounted what happened to members of the federation in 1995 when VAT was introduced for the first tme. He said they were made to pay huge sums of money which were not recovered. Mr. Quansah said to avoid this distressing situation the federation requested to VAT Secretariat for a representation on the VAT Oversight Committee which the Secretariat granted. He said that the purpose of the request was to ensure that exporters’ interests and concerns will be addressed. Mr. Kwesi Ackaah of the VAT Project Office said the Secretariat has revised its educational programmes to target specific groups. He explained that exporters are likely to be in permanent refund situation adding that at the end of every month an exporter, who is able to export 70 per cent of his products will be given a refund of indirect taxes paid on inputs. The VAT official said this prodcedure is to help make the Ghanaian Exporter more competitive.
