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November 13, 2006
AGI calls for Tax Holiday for
Start-Ups Companies
Accra, Nov. 14, GNA -The Association of Ghana Industries (AGI)
has asked government to grant all domestic manufacturing
start-ups a five-year tax holiday while it takes steps to
impose a minimum duty of 20 per cent on imported finished
products which could be manufactured locally.
Similarly, the association is calling for a special tax to
be put on all advertisements of imported finished goods.
These recommendations are part of AGI's proposals for
consideration into the 2007 Budget to be presented on
Thursday November 16.
Briefing members of the Parliamentary Select Committees on
Trade, Industry and Tourism and Finance, on the proposals,
Mr Tony Oteng-Gyasi President of AGI said the time had come
for government to adopt deliberate policies to encourage
domestic manufacturing firms to contribute to the growth of
the economy.
This, he said, was necessary to ensure that domestic
companies did not only reduce their cost of doing business
but also improved their productivity to stand the
competition in the global environment.
"Any measure that will encourage manufacturing companies to
increase their contribution to the national economy is
welcomed," he said.
Mr. Oteng-Gyasi said AGI was seeking the withdrawal of duty
on all imported raw materials because imposition of taxes at
the production stage turned to increase the cost of
manufacturing and make the goods uncompetitive to imported
ones.
He said the association held the view that shifting the tax
from production to consumption would drastically reduce the
cost of business and make the companies to become
competitive.
Other concerns of the AGI are the delay in the payment of
duty drawback, which it said, should be fast tracked,
abolishing of the national Reconstruction Levy and other
charges that it said, were impacting negatively on their
cash flow.
Mr. Oteng-Gyasi also drew attention to high GCNet charges
and called on government to abolish the ad valorem charges
and fixed a minimum and maximum levels of fees that could be
paid by the importers.
He urged the Parliamentarians to study the Association's
proposals and bring their concerns raised to bear on the
debate on the budget on the floor of the House.
GNA
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