Business General

Public gets 70% allocation for auction goods in new directive

The Board of Directors of the Ghana Revenue Authority (GRA) has directed the Customs Division of the GRA to immediately allocate 70 percent of all auction goods to the general public and 30 percent to the Confiscated Assets Committee (CAC).

Previously, the practice was the other way round where the CAC was allocated 70 percent against that of 30 percent for the public.

A statement by the GRA to Goldstreet Business indicated that the new policy directive which applies to all new auction sales and allocations is a reform to increase revenue for the state.

Instructively, the reserve price for all auction goods, according to the statement, shall be twice the duties payable plus 50 percent of the value of the asset.

“Where the owner of the asset becomes the beneficiary of the auction, the reserve price will be twice the duties payable only” the statement noted.

The GRA has however explained that all previous allocations or sales not paid for and cleared by beneficiaries by October 31, 2019, shall be forfeited and reallocated to new buyers.

A source at the GRA told the Goldstreet Business that the October deadline, is to deter political party supporters who lobby for auction goods only to resell such goods as a business venture.

“Often, people receive chits to pay and take the goods but they also go to find buyers and that delays the process. Most of these people turn out to be party supporters” the source said.

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