2023 Budget: AGI pushes for zero-rated duty on imported raw materials

2023 Budget: AGI pushes for zero-rated duty on imported raw materials

The Association of Ghana Industries (AGI) has proposed for inclusion within the 2023 Budget, a number of interventions it expects would revitalise the productive sector and drive industrialisation in the direction of export promotion.

The 2023 budget is predicted to be offered to Parliament on Thursday, twenty fourth November, 2022.

In an interview aired on Joy FM Midday News on Wednesday, President of the AGI, Humphrey Ayim-Darke urged government to introduce a zero-rated import duty on raw materials whereas reversing the tariff on import merchandise.

This, when executed, in accordance to him, “would serve as a medium to reactivate the productive sector.”

They additionally appealed to the government to evaluate the VAT system.

“The VAT structure as it is, is anti-production …, we have the straight levy, we have the standard levy, we have the levy within the bracket… VAT should be reversed and possibly should be a clear input and output tax,” he said.

Mr Ayim-Darke additionally said though the Association doesn’t expect the government to introduce new taxes, they expect government to deploy expertise to improve tax compliance on VAT and other tax handles so as to roll on extra taxpayers.

“We are fairly aware that it will be an austerity budget where expenditure on government will be controlled,” he said.

In a associated improvement, some business house owners need government to take robust and decisive measures to curtail the depreciation of the cedi and the rising inflation.

“The fluctuation of the dollar rate is really frustrating us. If they can make sure that they get a very sustainable dollar rate then business can be good.”

“If the dollar rate keeps going up, it affects businesses as well as make prices shoot up but should it go down, it also helps us to at least lower our prices for people to buy,” they said.

Meanwhile, the Dean of the School of Business at the University of Cape Coast (UCC), Professor John Gatsi desires government to prioritise reducing expenditure.

He added that a few of the government’s flagship programmes must be rationalised.

Similarly, the Director of the Institute of Statistical, Social and Economic Research, Professor Peter Quartey desires government to minimize down on its bills for the 2023 fiscal year.

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Credit: myjoyonline

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