The Association of Ghana Industries (AGI) has entreated the government to reduce taxes for its members to be able to operate effectively.
James Asare Adjei, President of AGI, has indicated that his outfit was dissatisfied with the introduction of taxes without recourse to its members, especially as it has had adverse impacts on their businesses.
Speaking at the AGI’s 56th Annual General Meeting in Kumasi recently, he said, “This year businesses were subjected to new taxes without any consultations; AGI and its members are not happy with the development and have therefore engaged the Ministry of Finance on this subject matter extensively.”
The AGI has among other things, expressed displeasure over some tax obligations expected of its members.
Notable among them is the 17.5 percent VAT, 3 percent VAT flat rate as well as some port charges.
The industries have also complained about the fact that not only have the development increased their cost of operations, but the high tax regime has also made them less competitive compared to their peers across the region and around the globe.
“With the support of BUSAC fund, we have engaged a consultant to conduct an extensive study on the tax regime relating to the private sector. The study will give comprehensive information about the various taxes and recommend the ones that require reforms.”
The AGI president added that he was confident the outcome of a tax effect study would propel further discussions on a reduction or possible elimination of certain taxes industries consider inimical to their operations.
“The economic affairs committee of AGI will also engage the appropriate ministries when the report is ready and inform members of the AGI accordingly,” he disclosed.
Meanwhile, the AGI boss has commended the Ministry of Trade and Industry for its efforts towards the ‘Made in Ghana’ policy as it has benefitted its members.
He urged his fellow members to “take advantage of the opportunities, even though he admits there is still more work to be done.”
In a related development, Mr Asare-Adjei has called on government to as a matter of urgency, reconsider the Trade Liberalization policies and also address the problem of multiplicity of taxes that affect members of the association.
According him, the nature of the policy is gradually turning Ghana into a heavily import dependent economy – a situation he says is very worrying to local industries.
“It is obvious that local industries are experiencing numerous challenges, to mention a few, access and cost of credit, high and unbearable electricity tariffs to industry, stiff competition to imported product,” he said.
“We have increasingly become an import dependent economy. I believe we must reconsider our trade liberalization policies which seem to give unlimited access to all kinds of imports into our markets. The challenges of globalization emanating from the keen competition from imported goods keep on eroding the competitiveness of local industries,” he added.
Mr. Asare-Adjei bemoaned the multiplicity of taxes that businesses are subjected to and called on government to collaborate with industry player to remedy the situation.
He made the statement at the association’s awards night in Accra.
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.
(Via: NewsGhana)
