Next govt must review VAT regime — Association of Ghana Industries

The Association of Ghana Industries (AGI) says the next government must streamline the value added tax (VAT) regime into a more efficient tax system to support industrial growth.

The call follows an engagement with the major political parties to cause them to integrate a VAT review into their manifestos as part of measures to create a more conducive environment for businesses to thrive, boost innovation, and generate jobs and revenue for economic transformation.

The association maintained that the current structure where businesses contributed 21 per cent of VAT to government yet recovered only 15 per cent from consumers was gradually becoming counter-productive to their operations.

At the opening of the Regional Annual Meeting (AGM) of the Accra Branch of the Association of Ghana Industries in Accra recently, the Chief Executive Officer (CEO) of the association, Seth Twum-Akwaboah, said the remaining six per cent was a huge figure which businesses could never recover and for that reason must be reviewed to ensure efficiency.

The AGM

The Accra Regional Annual Meeting, Business Growth and Sustainability Seminar and Job Fair is aimed at equipping businesses and individuals with the skills and networks necessary to drive growth, improve productivity and create employment opportunities.

It was on the theme: "Empowering growth: Building a strong workforce for tomorrow."

Speakers and panellists included Accra Regional Chairperson of AGI, Tsonam Cleanse Akpeloo; Deputy Director, Research and Development, Monitoring and Evaluation at Ghana Cocoa Board, Michael Ekow Amoah; CEO, African Aurora Business Network, Maureen Odoi; Country Director of Generation Ghana, Vandyck Lomotey; and Head of Business Development, and Deputy Director at the Ghana National Service Authority, Gabriel Osei Jnr.

Social contract

Mr Twum-Akwaboah stated that it could be recalled that years back, in previous elections, the AGI used to sign memorandums of understanding (MoUs) with the political parties but now it had changed the strategy to a level where it influenced the parties to enter into a bigger social contract with the whole country.

With this, he said, the AGI intended to rather inspire the manifestos of the political parties to ensure they had included key reforms that could create a conducive environment to support industries.

“So indeed, we engaged all the key political parties — former President John Mahama, Vice-President Dr Mahamudu Bawumia, Alan Kyeremateng and other independent candidates and their executives.”

“We are working hard on this, but our strategy is simple, we will ensure that whoever wins the elections will implement policies that support industrial development, and interestingly, some of our issues have been captured in their manifestos,” he added.

Open avenues

Mr Akpeloo stated Ghanaian industries needed to open avenues for education, training and skills development to help accelerate growth.

He explained that manufacturers who prioritised workforce strategy, engagd in upskilling, and adopted digital technologies would thrive, and not just survive.

He said by focusing on workforce development, manufacturers could empower their employees to drive growth, improve productivity and stay competitive in an increasingly automated landscape.

“As industries evolve, so must our workforce take up comprehensive training programmes that align with market demand and ensure that our employees possess the skills needed today and tomorrow.”

“We need to collaborate with educational institutions and vocational training centres to help bridge the gap between education and industry, fostering a workforce that is not just skilled, but also adaptable and innovative,” he said.

Errand runners

For his part, Mr Osei called on employers to see to it that national service personnel were not turned into mere errand runners but should be trained on the job.

He said the national service period played a critical role in the development of these personnel and for that reason must be used to prepare the personnel for the job market.