The Association of Ghana Industries (AGI) has expressed its commitment to ongoing discussions with Finance Minister Ken Ofori-Atta and Cabinet to reassess certain taxes approved in the 2024 Budget. The objective is to prevent undue burden on industries as the economy displays signs of recovery.

AGI Chief Executive Seth Twum Akwaboah revealed to Joy Business that the association believes some taxes in the budget could be more effectively targeted rather than generalized. Akwaboah emphasized the need for careful consideration to stimulate production without overly taxing industries.

“We thought that there are certain areas that if the government tackles very well, it will stimulate production. Because if you take so much [taxes] from industries then there will be a challenge since this is the working capital that you are taking away from them,” explained Akwaboah. He added that the AGI would persist in engaging with the government to ensure production remains unaffected.

While acknowledging the positive impact of some exemptions granted to industries, Akwaboah stated, “The exemptions that some businesses got are good but I think we’ll continue to engage the government to see how we can review some of the taxes.”

Notable exemptions in the 2024 Budget included relief on the importation of raw materials for the pharmaceutical industry, locally produced sanitary pads, and the introduction of an import duty waiver for commercial electric buses used in public transportation.

Conversely, certain tax proposals in the budget included enforcing the issuance of certified value-added tax (VAT) invoices for deductibility in corporate income tax, initiating full implementation of minimum chargeable corporate income tax, and the commencement of Phase 2 of the VAT electronic invoicing (e-invoicing) program. The AGI’s engagement aims to strike a balance between fiscal measures and industry sustainability.