Govt seeks support from industries to introduce tax reforms

The Minister of Finance, Dr Mohammed Amin Adam, has called for strong support from industries and the business community in general to implement comprehensive tax reforms that can create a conducive business environment to inspire growth.

He explained that the government was aware that a fair and humane tax system could help maximise adequate revenue to finance its budget for the benefit of Ghanaians.

Speaking at the 13th AGI Ghana Industry and Quality Awards in Accra last Wednesday, the minister stated that the government was ready to partner with the private sector to put in place mechanisms that could maximise tax collection efforts.

"The AGI President informed us that the tax system was not enabling enough, and tax collectors were harassing business people and private companies in the country.

"We responded and withdrew all front-line tax collectors in order to have a humane face approach to tax collection. After changing the approach, we now exceed our target 
for tax revenue every month and so, we cannot be right that tax collectors will be holding canes to chase business people every time," he said this in response to a call 
made by the President of AGI, Dr Humphrey Kwesi Ayim Darke, on the need for the government to introduce tax reforms and other interventions to help grow industries.

Economic engine

Dr Adam explained that industries and the private sector were the bedrock as well as the fuel of the country’s economic engine.

“The Government of Ghana (GoG) appreciates the work industries are doing for the country. This is because any country that does not facilitate the work of the private sector and industry will not realise economic growth.

“And so, this is why at the Finance Ministry, we are very sensitive about complaints coming from AGI, Ghana National Chamber of Commerce and Industry (GNCCI) and the business community in general,” the minister added.

Exchange rate fixing

The AGI president said there should be a review of the bi-weekly exchange rate fixing at the ports to help provide stability and predictability for businesses.

“It should be possibly extended to sustain the gains we have made in recent times. As we navigate this new era, building strong local supply chains has become more essential than ever.

“The dependency on international markets for raw materials, machinery, and other essentials makes our economy highly vulnerable. By prioritising local sourcing and building partnerships with domestic suppliers, we not only reduce the risk of disruption but also stimulate economic growth and job, creation right here in Ghana,” he said.

To this end, he said the AGI was actively working with stakeholders to promote policies that favour local production and procurement.

He said it was therefore fulfilling to see almost all the manifestos of the major political parties captured under this initiative.

“By championing Made-in Ghana products and services, we can build a robust local market that is more resilient to external shocks. As we celebrate the achievements of 
tonight's award winners, let us remember that our journey is not solitary,” he said.

He added that it was a shared commitment to creating an environment where Ghanaian businesses could not only survive but flourish.

Importance of standards

The Director General of the Ghana Standards Authority, Prof Alex Dodoo, underlined the importance of standards and quality in the operations of industries in the country.

“As we gather to recognise and celebrate the achievements of industries that have demonstrated resilience and excellence this year, I want to emphasise the importance of 
standards and quality in realising these accomplishments.

“Standards provide a foundation for businesses to build upon, ensuring that they can adapt, innovate and thrive in the face of challenges. The GSA stands as a steadfast 
advocate for local production, export diversification and expansion,” he said.

He said the opportunities of the African Continental Free Trade Area Agreement and the revamped African Growth and Opportunity Act (AGOA) agreement provided 
opportunities for Ghanaian industries to increase trade within Africa and across the world.