2024 Budget: Ghana is not completely out of the woods – Association of Ghana Industries
The President of the Association of Ghana Industries, Humphrey Ayim-Darke has expressed mixed reactions to certain interventions and initiatives outlined in the 2024 Budget Statement and Economic Policy presented by the government.
He noted that although Ghanaians greeted the government’s budget with optimism, there is a need for cautious and measured expectations in light of the ongoing recovery process.
Speaking on JoyNews’ Newsfile on Saturday, Mr. Ayim-Darke pointed out that the country is still emerging from a period of economic hardship and has not fully overcome its challenges.
“We are still in the woods, and we’re not yet out of the woods, and therefore that analysis should not be contextualized,” he added.
Despite the governance issues, liquidity challenges, and debt positions, Mr. Ayim-Darke clarified that there have been some positive aspects following the period when the country faced economic distress.
On Wednesday, November 15, the Finance Minister, Ken Ofori-Atta announced that the government has initiated reforms to alleviate the tax burden on Ghanaians.
According to him, the government’s tax policy since 2017 initially focused on providing substantial relief to the private sector until expenditure pressures in 2020 necessitated a more aggressive approach.
The Finance Minister acknowledged the challenges of implementing all necessary structural reforms and tax reliefs immediately but assured Parliament of the government’s commitment to reducing taxes for industry.
Mr Ofori-Atta announced a zero rate VAT and the granting of import duty waivers for raw materials for locally manufactured sanitary pads.
The Finance Minister also outlined measures to simplify taxation, such as the introduction of a VAT flat rate of 5 per cent on commercial properties and a simplified tax return to promote voluntary compliance, especially for individuals in the informal sector.
Source: Ghana News
