The Association of Ghana Industries (AGI) is calling on the incoming government to prioritize comprehensive tax reforms and economic policies in its first budget to foster industrial growth and enhance the business environment.
The AGI specifically advocated for a review of the value-added tax (VAT), the introduction of a flat tax rate, and measures to stabilize exchange rates, all aimed at reducing operational costs and boosting competitiveness.
During the AGI’s 64th annual general meeting held in Accra, President Dr. Humphrey Kwesi Ayim Darke emphasized the need for innovative approaches to macroeconomic management and fiscal rationalization.
He highlighted that these reforms are crucial for consolidating the gains achieved under the International Monetary Fund (IMF) structured program. “Promises of tax reforms, including a flat rate and fixed exchange rate at the ports for clearing goods, are part of our high expectations for the industry,” he stated.
Mr. Gyamerah from the Ghana Revenue Authority (GRA) noted that they are awaiting policy direction in early 2025 to implement measures that would support industrial growth.
He pointed out that industries are vital for economic development, particularly in creating jobs for the youth. “The growing uncertainty in our tax environment, including rising taxation and a multiplicity of taxes, necessitates discussions on lasting solutions,” he added.
Dr. Asare reported a significant growth in non-traditional export earnings since the National Export Development Strategy (NEDS) was implemented in 2021. Non-traditional export revenue surged from $2.85 billion in 2020 to $4 billion in 2023, reflecting a more than $1 billion increase over three years. This growth was largely attributed to key sectors such as iron and steel, aluminum-processed cocoa products, and plastics.
The AGI’s meeting accents the importance of maintaining peace and unity in Ghana to attract foreign direct investment. Dr. Darke urged political parties to prioritize national interests as they prepare for upcoming elections, reinforcing that a stable environment is essential for economic progress.
