A former Trade Minister has said the manifesto promise of the New Patriotic Party (NPP) to reduce taxes in Ghana in order to bolster the capacity of businesses is supported by economic research.
Dr Konadu Apraku says it has been proven worldwide that a reduction in tax rate enhances the operation of businesses, and helps them to expand. It also helps government to generate more revenue.
Speaking to Evans Mensah, host of Joy FM’s Top Story programme Wednesday, he said: “The trend around the world today is adjusting taxes to allow businesses to succeed.”
The Association of Ghana Industries (AGI) has raised grave concerns regarding the NPP policy to reduce taxes in the country captured in the party's 2016 manifesto.
At a meeting held Wednesday between members of the AGI and an NPP delegation led by the party’s flagbearer, Nana Addo Dankwa Akufo-Addo; a former Trade Minister, Alan Kyeremanten and Dr Apraku, the Association asked the party to go back to the drawing board to reconsider the policy since it is not feasible.
AGI President, James Agyei told Joy News apart from the issue raised about the tax cut, they were equally concerned about the way the energy problem is being handled.
“We think that we should not be looking at ad-hoc solutions, but effective implementation of the medium to long term plan,” he said.
The over 1,200 member business association in Ghana advised the NPP leadership to cause a review of the Companies Code in order to correct some anomalies that there are in the law.
Despite these concerns, Mr Agyei said they had a “fruitful interaction and as an industrialist, we are looking forward to programmes that will improve our situation.”
But Dr Apraku said apart from the association’s call for the Companies Code to be reconsidered, “basically there is nothing they raised that we did not touch on.”
He said they would put up a business support mechanism that includes the reduction of corporate tax rate, stabilization of the micro-economy and reducing the deficit from 12 percent to as low as manageable.
The former Minister who is also an entrepreneur said because the NPP is sensitive to the plights of businesses they will improve the energy supply situation to ensure that the erratic problem is completely fixed.
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