As Ghana approaches its presidential elections on December 7, the Association of Ghana Industries (AGI) has emphasized the need for significant tax reforms. Speaking on Joy News’ PM Express Business Edition, Dr. Humphrey Ayim Darke, President of AGI, called for a simplified and business-friendly tax system that aligns with Ghana’s economic realities.

Dr. Darke highlighted that all the presidential candidates have promised tax reforms, but he urged that these reforms must be practical, achievable, and strategically aligned with broader economic goals. “Reforms must consider the macroeconomic gains while staying rooted in fiscal sustainability,” he noted.

He criticized the current tax structure as overly complex and burdensome, describing it as a major obstacle for businesses. “The VAT, levies, and so-called nuisance taxes have been a persistent issue. These policies are stifling business growth rather than fostering it. We need a system that enables growth,” he said.

Acknowledging the importance of government revenue, Dr. Darke stressed the need to strike a balance between reforming taxes and maintaining fiscal stability. “Tax reforms will undoubtedly impact domestic revenue, so it’s crucial for the government to carefully evaluate the available options. Whatever changes are made, the outcome should be a tax system that is easier to navigate and supportive of industrial development.”

He also pointed out that tax reforms alone would not resolve Ghana’s economic challenges. “We need innovative measures in other areas, such as exchange rate management, tourism, and remittances, to generate immediate revenue and stabilize the economy,” Dr. Darke concluded.

Source: TheDotNews