The Association of Ghana Industries (AGI) has urged President Mahama’s new government to promptly honor its commitment to streamline Ghana’s tax system.
The association believes this would provide much-needed relief to struggling businesses.
Highlighting the challenges faced by manufacturers, AGI noted that growth in the sector has been stifled by tax complexities that hinder efficiency and expansion.
Speaking to Citi Business News, the Greater Accra Regional Chairman of the AGI, Tsonam Akpeloo stressed that simplifying the tax process is crucial to supporting the government’s ambitious plan for a 24-hour economy.
“Our view is that this year should remain a year that would witness a proper cancellation of some of these nuisance taxes. And if we see that happen, you would begin to witness a situation where industry, especially the manufacturing component of industry will grow tremendously. If you observed last year, even though there appeared to be an increment in the GDP growth rate of industry, the real manufacturing sector is actually not growing.”
Tsonam stressed the need for a rationalized tax regime to ease the financial burden on businesses.
He said these comprehensive tax reforms will stimulate growth, enhance competitiveness and attract investments to boost the economy.
He also expressed optimism that under President Mahama’s leadership, the government will address the concerns of the business community and implement policies that foster industrial development.
“The manufacturing sector is not growing because most of these taxes and other factors are making it difficult for us to grow. And so we want a situation where the issues are properly dealt with this year, especially to ensure that the government will essentially promise a 24-hour economy, will really take some of these bold steps, to promote proper industrialisation.”
