AGI appeals for reduction of utility tariffs for manufacturing companies
The Association of Ghana Industries (AGI) has appealed to the government to reduce the utility tariffs for manufacturing companies and industries producing and contributing to the development of the country.
The AGI Greater Accra Regional Chairman, Mr Tsonam Cleanse Akpeloo, made the call at a breakfast meeting in Tema, which was hosted by the Ghana Investment and Promotion Centre (GIPC).
Mr. Akpeloo, who is an economist and a technology entrepreneur, stated that Ghana was one of the few nations in the world where industry paid more in electricity costs than home enterprises.
He pointed out that taxes and power accounted for 30 per cent of production expenses, making it difficult for manufacturing firms to prosper and compete globally.
The majority of Small and Medium-Sized Enterprises (SMEs), according to Mr. Akpeloo, who is also the CEO of SUKU Technologies, were still adjusting to the impacts of COVID-19, and that several businesses had to suspend production as a result.
To increase production and effectively compete in the African Continental Free Trade Area (AfCFTA), he said there was the urgent need to preserve the interests of Ghanaian SMEs through the lowering of taxes on raw materials.
Additionally, he said, “We are asking for complete support for indigenous businesses, policy clarity, and a policy environment that is so clear that those who are eager to invest in Ghana understand that their money will be safe.”
He stressed that the three taxes implemented early in the year—the Tax Amendment Act, Exercise Duty Amendment Act, and Growth and Sustainability Act—along with VAT and levies, had a significant impact on local producers’ ability to advance.
He also mentioned that the tax structure was extremely burdensome for local businesses.