AGI Unhappy About Tax Laws

GOVERNMENT HAS been urged as a matter of urgency to address inconsistencies in the country's tax laws which tend to derail economic growth.

According to the President of the Association of Ghana Industries (AGI), Tony Oteng Gyasi, tax incentives as presently constituted in the tax laws have not yielded the necessary results because policies have not complemented each other, citing the incentive for companies that relocated to rural areas. These companies, he said, lacked basic infrastructure.

He therefore called on government to ensure that the imposition of taxes on industries run along with the provision of adequate infrastructure that would enable them survive.

Mr. Oteng Gyasi said there is the need for government to remove inconsistencies in the tax laws, adding that some laws in the tax code are not enforceable and very difficult to implement.

“Industries cannot survive in areas which lack social amenities such as electricity and water supply.

“We need to ensure that this inconsistency does not lead to the collapse of vibrant industries as well as discouraging the establishment of new ones in the rural and urban areas,” he reiterated.

Launching AGI's Basic Guide on Ghana's tax law in Accra, Oteng-Gyasi said the AGI is of the view that taxation is a healthy practice for the economy to foster development.

The guide, which was prepared in collaboration with German Technical Corporation (GTZ) and the AGI, is a simplified version of the tax law for easier assimilation by individuals who previously need legal practitioners to explain it to them.

It is also meant to assist law students, tax officers and companies to understand the law and its implications.

Mr. Oteng-Gyasi said the AGI is wondering at what point the incidence of tax takes effect, especially with the situation pertaining to Ghana where industry is taxed even before production.

He explained that taxes on raw materials and goods that feed industry, and taxes that increase the cost of doing business are not good for the economy.

Giving an example to buttress his point, Mr Oteng Gyasi said the instance where imported printed materials like text books attract no duty, is detrimental to the growth of local printers who are taxed on even the raw materials for printing.
By Charles Nixon Yeboah