The Association of Ghana Industries (AGI) has bemoaned the excessive tax impositions which are rendering their ventures unattractive.

The association also says the removal of incentives on the importation of raw materials is a potential threat to their business. 

They expect the government, through the Ghana Revenue Authority, to incorporate the concerns of businesses and industries into tax policy decisions.

The businesses registered their displeasure during their quarterly general meeting of the Ashanti, Bono and Bono East regional branch of AGI. 

They engaged on the theme “IMF Conditionalities – Effects on Industries”.

Regional Chairperson, Kwasi Nyamekye, said the current tax regime will render private businesses less competitive and hamper their opportunities under the African Continental Free Trade Area Agreement. 

“The portion of the IMF conditionalities which seeks to raise internal funds has brought an increased tax burden on industry following the removal of incentives on the importation of raw materials. The current tax policies have created an unfavorable business climate for the industry. Key challenges confronting businesses in Ghana now are the excessive taxes and high tax rates including VAT. These rates place an enormous burden on companies, particularly small and medium-sized enterprises (SMEs), and undermine the government's efforts at raising the targeted amount of taxes to undertake infrastructural development and to spur the growth of the economy.

“The intricacies of the tax regulations, coupled with frequent changes in policies, pose a significant challenge to businesses. The recent tax audits and intimidations of the Economic and Organized Crime Office (EOCO) in our offices make business transactions in the Ashanti and the Bono regions unfriendly," he stressed. 

According to him, “SMEs lack the necessary resources and expertise to navigate through this complex web of regulations. As a result, many businesses are burdened with the additional costs of hiring tax consultants or accountants to ensure compliance and this hampers our ability to allocate resources towards growth, innovation, and job creation. These taxes could cause a collapse of our businesses or completely render us less competitive on the continent as we try to trade under the African Continental Free Trade Area Agreement.” 

Deliberations at the general meeting sought to proffer solutions to make tax payments in the country less burdensome to industries.

Kwasi Nyamekye admonished the government to reduce and implement progressive tax rates to keep private businesses thriving. 

“I suggest that the government reduce the overall import charges on the importation of raw materials for manufacturing. Discuss with industries to implement progressive and fair tax rates that encourage growth and investment. Simplify the tax system and provide clearer guidelines to ensure transparency and ease of compliance for businesses especially SMEs. 

“Encourage sector-specific tax incentives to promote investment and growth in key industries, such as manufacturing, agriculture, and technology. Institute Fair and non-discriminately VAT regime. We further urge the government to do regular consultations, engage with business owners and industry associations to gain a better understanding of their challenges and incorporate their feedback in tax policy decisions,” he added.