President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim-Darke, has said in an attempt to boost industrialisation and local productive capacity, the government must move in directing its focus on helping boost the local production sector, as part of its measures, the AGI suggests the government should consider a waiver on import duties on raw materials.
He said the move will not only enable expected growth in the production sector but also ensure that government generates more revenue through production taxation where there is value addition.
“AGI has also requested a waiver of exchange duties on imported raw materials as part of the measures to enhance local production and we are hoping that this will be implemented alongside the reversal of the benchmark.
The conversion of our standard rate VAT to a strait level regime continues to be a disincentive to local manufacturers,” He said.
He explains that given the fact that most of the raw materials are not found in this country, the removal of pre-production taxes will give some leverage to the production sector.
Dr. Humphrey Ayim-Darke holds that government must work in parallel with the production sector, as its role and contribution to the country’s GDP will remain crucial even after the IMF programme and intervention.
“AGI urging the minister of Finance to reconsider this tax regime and its potential impact on local industries. AGI, therefore, proposes a post-production tax to offer some relief to manufacturers.” He added.
-Ghana Industries
