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Economy

AGI calls for tax reform

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. Source: GNA

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