Accra: The Association of Ghana Industries (AGI) recently completed a two-day National Council Retreat aimed at strategizing collaboration with the government to foster development and growth in the industrial sector. The meeting, themed 'Resuscitating Industry to Spur Growth, Fiscal Balance and Job Creation,' sought to gather insights for the national economic dialogue and the upcoming budget.
According to Ghana News Agency, Dr. Humphrey Kwesi Ayim-Darke, President of AGI, shared that the council engaged in productive discussions with key government advisors, including Mr. Seth Terkper, Government Advisor on the Economy, Mr. Goosie Tanoh, Advisor on the 24-hour Economy, and the GRA Commissioner-General. The discussions centered on the potential of developing specific industries within the 24-hour economy, such as the poultry value chain, metal fabrication, textiles, and pharmaceuticals, to aid in revitalizing the economy.
Dr. Ayim-Darke emphasized the importance of focusing on these industries, noting that the AGI could play a critical role in reshaping the economy and revitalizing manufacturing sectors in partnership with the government. The retreat also highlighted several challenges hindering industrial growth, including issues related to foreign exchange, taxes, and policy reforms.
On the matter of tax reforms, members of AGI proposed measures to bridge the import duty gap and the VAT collection gap. They also suggested revising the VAT threshold of GHC200,000 to align with current exchange differentials and tax brackets. Mr. Seth Twum-Akwaboah, CEO of AGI, explained that the National Council examined various models to efficiently connect value chains within the 24-hour economy, which could sustain industries operating continuously and creating essential jobs.
Mr. Twum-Akwaboah provided an example of the pottery industry, illustrating how each stage of its value chain can create jobs, highlighting the need for effective collaboration with government advisors like Mr. Goosie Tanoh. He also raised concerns about the multiple audits faced by companies, affecting their operations and underscoring the need for effective tax administration to ensure a conducive business environment.
Additionally, Mr. Twum-Akwaboah highlighted the significance of a tax arbitration system that involves both private sector and institutional representatives to address tax disputes without resorting to court, thereby streamlining the resolution process for industrial entities.