Highlights of budget EXPECTATIONS

The following are highlights of the expectations of this year's budget:

The Association of Ghana Industries (AGI):

* Reduction or elimination of some of the taxes (Corporate income tax, ECOWAS Levy, EDIF Levy, NRL Levy, Inspection Fee and Processing fee to make local industries competitive.)


* Impose special tax on importation of cheap steel products in order to help grow local steel mills. (Ghana currently has the lowest import duty -1 0.0 per cent - on iron rods.)


* Reduce the 140 per cent excise duty on locally manufactured cigarettes.


* Zero rating for agricultural and pharmaceutical products.


* Review Tax Law Regulations LI 1675 which defines withholding tax rates for companies.

* Sustain micro-economic discipline.


*Provide adequate funding for agriculture and ensure that private sector activities


are enhanced to meet the growing aspirations of Ghanaians.


*Increase funding for agriculture, education and infrastructure development


*Use budget to provide a clear set of economic stimuli and further tax incentives for businesses to ensure available long-term funds for planning.


* Maintain VAT at 12.5 per cent


* Increase support for small-scale businesses through NBSSI and affiliate institutions

* 2002 budget should sustain microeconomic discipline.


* Growth of economy should be the main focus.


* Increase revenue generation to help balance government spending.


* Stick to strict fiscal discipline.


* Address debt overhang for Ghanaian companies.


* Transparent divestitures.


* Intensify efforts to reduce inflation to below the current 23.5 per cent.


* Increase budget allocation for education and agriculture.

* Maintain microeconomic discipline.


* Government should spend what it has.


* Increase revenue collection base.