Government risks missing revenue target with passage of new taxes – AGI

The Association of Ghana Industries (AGI) has condemned the lack of stakeholder consultations before the recent passage of the three revenue mobilisation bills by Parliament.

“We denounce the lack of stakeholder consultation on such fiscal policies, which have a negative impact on businesses,” the AGI said in a statement signed by its Chief Executive Officer (CEO), Seth Twum Akwaboah.

The statement revealed that: “AGI took steps to make input to the bills and it’s obvious that our submissions did not receive the consideration we expected."

The association which expressed disappointment with the recent passage of the bills noted: “Contrary to government’s ambitious revenue projection which largely hinges on the performance of Industry, we foresee a contraction in manufacturing and other related business activities.”

It continued that: “Businesses may have no option but to cut down on expenditure and production levels to stay within budget.”

The AGI noted that with the passage of the bills, government is at risk of missing its targeted revenue.

“With the foregoing, the government risks missing its revenue target if the industry has to contend with these new taxes,” the association stressed.

It further continued that it appreciates the “urgent need of the IMF measures, but this should not be at the expense of growth in our industrial sector.”

It, therefore, called on the government to “engage AGI on measures to incentivize our local industries to forestall the negative consequences of these policies.

“To this end, we welcome the opportunity to dialogue with Government on how to save jobs and the strategic options to explore in cushioning our local industries."

It also assured its “members that the Association will continue to engage Government on such fiscal policies to bring positive reviews in subsequent national budget statements.”