Wednesday, August 27, 2008

CONSUMERS DESERVE BETTER DEAL

Almost three months after the President directed the removal of duties on some imported food items, there are still complaints about high food prices on the market.
The presidential reprieve had come at a time when Ghanaians were reeling under a global crisis fuelled by high prices of crude oil and food items on the international market.
After the President directed the removal of the taxes, it was the expectation of consumers that there was going to be some reduction in food prices on the Ghanaian market. The immediate impact was not in the least felt and the general argument was that the items on the market were old stock and therefore could not be immediately affected by the government’s move.
However, three months on, Ghanaians still have to grapple with high food prices and it appears that the removal of the import duty, which is to cost the government GH¢150 million, has not benefited consumers.
Indeed, the strength of the package from the President is well demonstrated in the amendment of the Customs Excise and Preventive Service (CEPS) Duty and other Taxes Act to remove import duties on rice, yellow maize, wheat and crude vegetable.
That clearly shows how much importance the President or the government attaches to the issue. Yet, it appears some individuals are very much bent on circumventing the law and bringing to nought the relief otherwise granted Ghanaians to ease the level of their expenditure on these items.
The question that continually lingers on the minds of many Ghanaians, is: “Are importers of these items benefiting at the expense of Ghanaians or is it a case that there are lapses in the application of the law?”
Interestingly, the high price of crude oil on the world market that necessitated the package has eased by dropping from about $147 dollars per barrel to about $115 per barrel. Inflation, which soared to a little over 18 per cent, is also inching downwards.
In the light of these positive developments, the rising prices of food on the Ghanaian market is unacceptable.
The DAILY GRAPHIC wishes to identify itself with the call for urgent action by the authorities to address the problem.
When the President directed that import duties be removed, he urged importers to pass on the benefits to be derived to consumers.
The Finance Minister, Mr Kwadwo Baah-Wiredu, has expressed disappointment at the fact that some individuals were taking advantage of the government’s good intentions to benefit unduly.
In unambiguous terms, the minister decried the attitude of importers who imported items at very low prices and then sold at very high prices to consumers in order to make huge profits.
Over the years, the country has experienced similar trends, especially with drivers, who are quick to increase transport fares following fuel price increases, but are hesitant to reduce fares when fuel prices were reduced.
Perhaps, the government needs to be more stringent in demanding that such relief packages achieve their intended purposes. More often than not public complaints about such unfair pricing reach a crescendo only to fizzle out when Ghanaians resign to their fate because of the feeling that their concerns are not being addressed.
If such good policies do not benefit the ordinary person, then perhaps, the government may have to find other ways of directing such tax cuts for the benefit of Ghanaians. It is only when importers know that the government has other alternatives of ensuring that Ghanaians enjoy such relief packages that they will act more responsibly and respect the interest of consumers.
The DAILY GRAPHIC, therefore, urges the government to explore other options that will be beneficial to consumers or hold importers in check without being accused of introducing market controls.

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