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AGI launches tax guide
Accra, Jan. 15, Ghanadot/GNA-
The Association of Ghana Industries (AGI) on Tuesday called
on government to address inconsistencies in the country's
tax laws, which tended to distort economic growth.
"There is the need for government to remove inconsistencies
in the tax laws. Some laws in the tax code are not
enforceable and very difficult to implement, and this is
detrimental to industry", Mr Anthony Oteng-Gyasi, President
of the AGI said.
Speaking at the launch of the AGI's Basic Guide on Ghana's
tax law in Accra Mr. Oteng-Gyasi said the AGI was of the
view that taxation was a healthy practice for the economy to
foster development.
The Guide, which is collaboration between the German
Technical Corporation GTZ and the AGI, is a simplified
version of the tax law for easier assimilation by
individuals who hitherto needed legal practitioners to
explain it to them.
It is also meant to assist law students, tax officers and
companies understand the law and its implications.
Mr. Oteng-Gyasi said the AGI was however, concerned at what
point the incidence of tax took effect, especially in the
situation pertaining to Ghana where industry was taxed even
before production.
He explained that taxes on raw materials and goods that fed
industry, and taxes that increased the cost of doing
business was 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 attracted no duty, was detrimental to the growth of
local printers who were taxed on even the raw materials for
printing.
He said such tax laws stifled local industry to the benefit
of foreign products.
The AGI President held that 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, which lacked basic infrastructure.
He thus asked government to ensure that the imposition of
taxes on industries ran along with the provision of adequate
infrastructure that would enable them to survive.
"Industries cannot survive in areas which lack social
amenities such as electricity and water supply.
"There is the 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 said.
"People residing in communities that lack facilities for
industrial growth would end up becoming unemployed. And no
one is willing to set up an industry in such an area", he
said.
Other contributors at the programme stressed the need for
individuals and the business community to stay abreast with
what pertained in taxes levied on Ghanaians.
They held that it was important that the country had stable
tax laws that were beneficial to local industry as well as
attract foreign investment to grow the economy.
GNA
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