AGI awaits tax reforms next year

The Association of Ghana Industries (AGI) wants the next government to use its first budget and economic policy to introduce comprehensive tax reforms and other interventions to help grow industries and generally improve the country’s business environment.

Specifically, the association was seeking a review of the value-added tax (VAT), imposition of the flat tax rate, exchange rate stability interventions and other policies that would reduce the cost of doing business, increase competitiveness and promote industrialisation.

“In the coming year, the AGI expects to see more innovation from the incoming government regarding macroeconomic management, and fiscal rationalisation in the quest to consolidate gains obtained under the International Monetary Fund (IMF) structured programme.

Promises of tax reforms, including flat rate and fixed exchange rate at the ports for clearing of goods are part of the high expectations for the industry,” the President of the association, Dr Humphrey Kwesi Ayim Darke, said at the AGI’s 64th annual general meeting (AGM) and job fair in Accra last  Wednesday.

The AGM was on the theme: “Navigating the uncertainties of the business landscape to sustain productivity”.

Speakers and panellists at the plenary session were the Chief Executive Officer of Ghana Exports Promotion Authority (GEPA), Dr Afua Asabea Asare; the Commissioner in charge of the Domestic Tax Revenue Division at the Ghana Revenue Authority (GRA), Edward Apenteng Gyamerah; CEO of AGI, Seth Twum-Akwaboah among others.

Govt commitment

Dr Darke said the AGI would like to see more commitment from the government towards the development of local value chains to feed the industry, including collaborations that strengthen businesses.

He said Ghana remained the most preferred investment destination in the West African sub-region.

“We have the clout to wield influence over foreign investor decisions on our economy. Our attraction to foreign direct investment is largely anchored on the peace that we enjoy as a country.

“I, therefore, urge all our political parties and whichever government receives the mandate of the people to put Ghana first and strive to keep our country united,” he added.

GRA’s position

Mr Gyamerah said GRA was waiting for policy direction in the first quarter of 2025 to implement measures that would impact industrial growth.

He said the industries were the key sectors of the economy that drive growth, particularly in areas of job creation for the teeming youth across the country.

“The growing uncertainty in our tax environment, including rising taxation, the multiplicity of taxes, are something we are all aware of and so we need to meet and have a discussion on lasting solutions,” he added.

Export gains

For her part, Dr Asare said the country had witnessed an appreciable growth in non-traditional export earnings since the implementation of the National Export Development Strategy (NEDS) started in 2021.

It follows a positive trend in non-traditional export revenue, which increased from $2.85 billion in 2020 to $4 billion in 2023, representing a more than $1 billion rise over the past three years.

She said the growth was made possible through efforts of the industrial sector which recorded almost 80 per cent of the value of the country’s export earnings.

He said the key drivers for the growth included iron and steel, aluminium-processed cocoa products, plastics and other industrial commodities.

The CEO explained that the growth reflected the dedication of various stakeholders to strategically boost the strength of Ghanaian exports on the global market.

“Since the implementation started in 2021, specific activities by the authority, export sector stakeholder institutions as well as the private sector, we have seen an appreciable growth in non-traditional export revenue,” she said.