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AGI calls for tax reform
Accra, Sept. 4, Ghanadot/GNA - The Association of Ghana
Industries (AGI) on Thursday, called for the appointment of
a Commissioner General who would have an oversight
responsibility over the commissioners of revenue agencies to
facilitate the activities of the Large Taxpayers Unit (LTU).
The association further called for the integration of the
various Government agencies, namely the Internal Revenue
Service, Value Added Tax and the Customs, Excise and
Preventive Service, so that they could have a common
database.
These formed part of recommendations of the AGI policy
document on growth-oriented tax reform in Ghana, which is to
be submitted to government.
Presenting the policy recommendations in Accra, Mr George
Kwatia, Tax Director of PricewaterhouseCoopers (PwC),
further recommended the abolition of VAT and import duties
on raw materials, packaging and computerization of all
revenue agencies.
He noted that there was very limited computerized
integration of Government agencies and limited co-operation
among them.
These, he said, had resulted in the duplication of
information and unclear understanding of the taxpayer on
issues of tax compliance.
"Various bureaucratic processes are hampering the tax
payment system making it difficult for taxpayers to comply
with their statutory requirements," he added.
This, he noted, provided greater opportunities for
non-registered taxpayers to escape the tax net.
According to him, the withholding tax system was a major
deterrent to individuals and companies which wished to enter
the tax net.
On elimination of pre-production taxes, Mr Kwatia said the
tax, such as VAT and import duties were currently imposed on
raw materials and packaging materials.
"These duties present an additional tax and cash flow burden
on local manufacturers thereby giving them an unfair playing
field since they have to compete with free zone entities,
which are exempted from these duties in the local markets."
According to him although the government would be assured of
its revenue, the AGI would monitor the process with regard
to its members to ensure that the deferral of the VAT
payment did not result in an abuse.
Mr Tony Oteng-Gyasi, President of AGI, commended the German
Technical Co-operation and the PwC for their support in
putting the proposal together after various stakeholders'
meeting.
Certificates were awarded to various companies for
sponsoring the AGI Business Climate Survey (BCS) 2007.
GNA
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