The Association of Ghana Industries (AGI), has urged government to take steps to reduce cost arising from the pre-production stage under the One District One Factory policy.
“Reduction in corporate taxes have never been our priority. Corporate tax is paid on the profit you make, so if you make a profit then you get taxed, and we don’t have issues with that. It is the pre-production, the taxes which go to increase your cost that we want something to be done about, because these are paid before you even get the chance to make profit.
So these are the taxes we are asking to be reviewed or be reduced because it is one of the surest ways of making companies competitive,” said Tony Oteng Gyasi, Chairman of the Economic Affairs Committee of the AGI.
Mr. Oteng explained that scrapping taxes on raw materials and inputs will also help members to create real value and contribute more meaningfully to the economic development of the country, adding, “We believe that AGI is the right body to partner government in looking at the possibilities and making sure that this very lofty policy become what it is meant to be.”
Mr Oteng Gyasi disclosed this in Accra, during a consultative meeting with the National Coordinator of the One District One Factory policy, Gifty Ohene Konadu.
Mrs. Ohene Konadu, explained that the success of the policy, depends largely on the private sector, hence the need to engage players on how to ensure its smooth implementation.
“AGI is the umbrella grouping of Ghanaian industries, comprising companies in the manufacturing, service and also the oil and gas sectors. As the main industrial body, therefore, the one district one factory policy initiative does not see the AGI only as a partner, but as a pillar that this initiative will thrive on.
So we want to discuss the progress of the work done so far and to seek further input of the association in the development of the modalities for implementing this project.” she said.
According to her, there is the need to fast-track measures to ensure speedy implementation of the policy, adding that: “we are overwhelmed with calls from within and abroad, and we would not like this enthusiasm to die off, that is why we are even more engager to commerce operations of the project.”