An economic think tank from the University of Ghana is advising government to scrap all import duties on agricultural machinery, pharmaceuticals and medical products to boost these industries' competitiveness.

The Institute of Statistical, Social and Economic Research (ISSER)'s call comes as government outlined various tax exemptions for healthcare and farming imports in its 2024 budget read last week.

However, import duties of up to five per cent remain on selected items.

"Granting exemptions on the importation of raw materials for the pharmaceutical industry may improve its competitiveness.

"Government should remove the import duties so that these light manufacturing industries enjoy full relief," said ISSER's director Prof. Peter Quartey at a budget review event on Wednesday.

He argued that eliminating these extra costs can have an oversized impact on expanding domestic medicine, equipment and input production to meet national demand and reduce reliance on imports.

Other discussants warned however that the tax reliefs could be abused by smugglers posing as domestic producers to avoid paying duties on finished imported products.

They thus urged customs authorities to enhance monitoring, institute mandatory licensing and certification schemes for local manufacturers benefitting from exemptions and conduct periodic audits.

Improved competitiveness of agribusiness and medical supply firms is identified as a key pillar in Ghana's post-COVID economic recovery efforts.