The Association of Ghana Industries (AGI) has urged government to prioritize local industries in the 2025 national budget by addressing unfair trade practices and reforming tax policies that disadvantage domestic businesses.
According to AGI, the disparity in taxation within the printing sector, makes it more cost-effective to import textbooks than to print them locally.
Speaking at a Press conference in Accra, AGI President, Dr. Humphrey Anim Darke, stated that the growth of the local printing industry is stifled by the requirement for printers to pay import duties on raw materials, while finished textbooks enter the country tax-free.
He noted that this imbalance must be addressed to strengthen local production and create more jobs.
He also raised concerns about the influx of smuggled goods that enter the market without paying VAT, making them cheaper than locally manufactured products.
Dr. Darke called for stricter enforcement of trade regulations to ensure fair competition for local businesses.
Macroeconomic stability and tax reforms
Beyond supporting local industries, he urged government to prioritize macroeconomic stability to enable businesses to plan and grow.
“A stable exchange rate, manageable inflation, and reasonable interest rates are critical for industrial growth, yet they remain beyond the control of individual companies,” Dr. Darke noted.
He emphasized that it is the responsibility of government and the Bank of Ghana to create a predictable business environment.
On taxation, AGI also called for reforms to the Value Added Tax (VAT) system, particularly the straight levy, which many businesses find burdensome.
The association also recommended expanding the zero-VAT policy beyond textiles and sanitary products to include other locally produced goods such as detergents.
Additionally, AGI has urged the government to eliminate outdated levies, such as the COVID-19 tax, and to reconsider proposed taxes on the beverage industry.
Dr. Darke argued that imposing a sugar tax solely on beverages, while exempting other sugar-based products, would be discriminatory.
Energy subsidies, capital access
AGI also pressed for energy policy reforms, particularly the need to adjust cross-subsidies on electricity tariffs to reduce costs for industries.
The association highlighted the challenges SMEs face in accessing capital due to high government borrowing, which has driven up interest rates.
Dr. Darke also stressed the importance of embracing digital solutions to improve tax collection and efficiency, advocating for greater investment in Ghana’s digital economy.
Expenditure cuts
With the government’s plan to cut public expenditure, AGI suggested that savings be redirected toward infrastructure projects, particularly in rapidly growing urban areas.
Dr. Darke proposed increased private sector participation in infrastructure development to ease financial pressure on the government.
As the 2025 budget takes shape, AGI remains committed to working with policymakers to create a more business-friendly environment.
“We believe the upcoming economic forum will provide further opportunities to strengthen Ghana’s industrial sector and reset the economy,” Dr. Darke added.
With these recommendations on the table, businesses across the country will be keenly watching how the government responds to AGI’s call for stronger support for local industries and economic stability.
By CHRISTABEL OBOSHIE ANNAN, Accra
