Rationalize Ghana’s tax system – AGI tells government

The Association of Ghana Industries (AGI) has described Ghana’s tax system as unfair and counterproductive to the growth of local businesses.

Chief Executive Officer of the association Seth Twum-Akwaboah said Ghana’s current tax regime is a disincentive to the private sector, a situation contributing to low revenue generation for the state.

Speaking on PM Express business edition, he said simplifying and streamlining the tax system makes it more efficient, easier to comply with, to boost revenue collection.

“The situation in Ghana now is that our tax regime is not in the best of shape. It is very high. If you import raw materials and when you look at the declaration, over 52 per cent of the value of items goes into taxes”, he complained.

Mr Twum-Akwaboah said it is time to review the current VAT system since it does not help private businesses.

“The other aspect is the unfairness in it, if I am a major distributor or operator and I’m selling and because I am in the formal sector, I put VAT on it when you go to the next door, and someone is selling the same item, there is no VAT on the same item so I’m saying we need to rationalize our tax regime “he stressed.

He recommended that the surest way to improve revenue for the country and have the full benefits is to deepen engagement in the rationalization of the tax regime.

Meanwhile, President John Mahama has pledged to streamline the tax regime to reduce waste with the ultimate goal of repositioning Ghana as a prime destination for businesses.

This move, he said will attract and motivate more investors to the country to help in absorbing the teeming unemployed youths.

Source: myjoyonline.com