AGI disappointed about passage of new revenue bills, warn of dire consequences for industry
The Association of Ghana Industries (AGI) has expressed disappointment at the passage of three new revenue bills by Ghana's parliament.
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The Excise Duty, Growth and Sustainability Levy and Income Amendment Bills have been slammed by AGI, who claim they will cause dire consequences for industry.
The AGI in a press statement on April 3, 2023, accused the government of imposing a tax regime that does not support local production and formal business operations.
They were also disappointed with the lack of consultation with stakeholders on fiscal policies that have a negative impact on businesses.
The statement said although the AGI made submissions to the bills, their input did not receive the consideration they expected.
It said its members were already struggling with inflation at 52%, VAT at 15%, water tariff increments of about 172% for the beverage sector, electricity tariff at 29.9% for the industry, policy rates at 29.5%, and an unstable foreign exchange regime.
The AGI warned that the imposition of new taxes on top of these existing issues will lead to a contraction in manufacturing and other related business activities.
The Association called on the government to engage in dialogue with them on how to incentivize local industries to avoid the negative consequences of these policies.
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It said it would continue to engage with the government on such fiscal policies to bring positive reviews in subsequent national budget statements.
