Raw materials imported should not attract taxes - AGI to government

Greater Accra Regional Chairman of the Association of Ghana Industries (AGI), Tsonam Akpeloo, has made a case for businesses that import raw materials to be exempted from the payment of import taxes at the port.

He explained that the collection of taxes including Value-Added Taxes (VAT) on imported raw materials piles up the burden of businesses and this has become unbearable for them.

Mr Akpeloo indicated that the taxes paid at the port have become increasingly too high as businesses pay VAT on both imported raw materials and finished products.

Speaking to GhanaWeb Business on the sidelines of GIPC CEOs Breakfast Meeting held in Accra on Tuesday, May 30, 2023, the Greater Accra Regional Chairman of AGI called on government to reconsider the calibration of taxes at the ports.

"The taxes you need to pay at the port are becoming increasingly too high for our members to endure. We import most of our raw materials from abroad. When you are importing the raw materials, you are asked to pay VAT, after you finish producing the product also, you are also asked to pay VAT. It is almost like double taxation," Mr Akpeloo stated.

"We are asking government to reconsider the calibration of the tax and the VAT and ensure that raw materials coming into the country do not attract taxes," he added.

Tsonam Akpeloo also called on government to provide clarity on policies for investors keen on pumping their monies into the local economy to be assured that their investments in Ghana are protected.

He further requested that government provides total support for indigenous businesses to thrive.

Meanwhile, President Nana Addo Dankwa Akufo-Addo has assented three new revenue bills; Income Tax Amendment Bill, Excise Duty Amendment Bill, and Growth and Sustainability Amendment Bill into law.

The Growth and Sustainability Levy is expected to raise approximately GH¢2.216 billion in 2023, while the Income Tax (Amendment) Bill, 2022 which amends the Income Tax Act, 2015 (Act 896) is expected to yield revenues of approximately GH¢1.29 billion.

The Excise Duty (Amendment) Bill, 2022 amends the Excise Duty Act, 2014 (Act 878) and is expected to yield approximately GH¢455 million.

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