The Association of Ghana Industries (AGI) has welcomed government’s resolve to scrap and reduce some taxes on goods and services as outlined in its first budget statement.
Among several taxes to be scrapped are the 1% levy on special imports, 17.5% VAT/NHIL in selected imported medicines that are produced locally, and 5% on real estate sales.
Speaking to Class Business, the President of AGI, James Asare Agyei, said scrapping of the taxes would stimulate private sector growth in the country.
He, however, noted that although the news was pleasing, the association would engage government over some of the taxes for which it did not announce reductions.
“AGI welcomes the budget which really comes with making sure that the private sector would be stimulated. A lot of initiatives have been identified in the budget [but] it is early days yet for us to be able to digest and know how some of these things are going to be implemented,” he stated.
“Let us understand that budgets are policy statements of government which outline strategies and plans. We would be engaging government looking at key areas which have been mentioned that would have good impact on private sector growth. For example, the various taxes that have been reviewed. Some of them have been totally abolished, others have been reduced, and then you can also see that even those that have been maintained, there is still the need to dialogue.”
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