AGI: Gov’t risks missing revenue target over 3 new taxes

The Association of Ghana Industries (AGI) says the government risks missing its targeted GHȼ3.8 billion it hopes to raise from the three newly introduced taxes.

Parliament on Friday controversially passed the three bills – Excise Duty, Growth and Sustainability Levy and Income Tax Amendment bills after fierce resistance by Minority MPs who narrowly lost the vote to approve the bills by 136 to 137.

According to the Finance Ministry, the three bills are expected to individually rake in the following;

• Income Tax Amendment Bill, 2022 = GH¢1.2 billion annually
• Excise Duty Amendment Bill, 2022 = GH¢400 million annually
• Growth and Sustainability Amendment Bill, 2022, = GH¢2.2 billion annually

The AGI in a statement said the government may not realise the revenue “if industry has to contend with these new taxes.”

According to the AGI, while it reckons that Government needs revenue, it is crucial for government to observe fiscal prudence.

“We appreciate the urgent need of the IMF measures, but this should not be at the expense of growth in our industrial sector.

“Indeed, it is in the mutual interest of industry and Government to sustain Agriculture and Industrial sectors which hold the key to job creation.”

The AGI consequently called on the government to engage industry “on measures to incentivise our local industries to forestall the negative consequences of these policies. To this end, we welcome the opportunity to dialogue with Government on how to save jobs and the strategic options to explore in cushioning our local industries.”