The Minister for Trades and Industry and Member of Parliament for Adansi Asikwa, Honorable K.T Hammond, has assured local businesses of the government’s commitment to protect them by reintroducing the import restriction bill.
He stated that the government had to withdraw the bill because of the many concerns raised by Ghanaians on the consequences it could have in the interim. He expressed worry about the country’s heavy dependence on imports for some very basic items, including sugar, salt and rice, that could have been produced internally.
“How come every conceivable item that we consume in this country is imported? Look at our Balance of Payment accounts. Just last year in 2023, we imported over 200 million dollars worth of animal intestines (yemuadie) as food”.
K.T Hammond
He stressed the urgent need for the government to implement measures to prevent the domination of the local market by foreign companies as had been done by some advanced countries like Malaysia, Singapore and Indonesia.
He believes the import restriction bill could not have come at a better time than now that local businesses are struggling to survive, maintaining also that complete domination of the domestic market by exotic companies will have dire consequences on the economy.
Speaking to Captains of industry at the 30th anniversary of Rose Aluminium Company and the 65th birthday of the founder of the company, Vivian Serwaa Adu, K.T Hammond said the government will take bold decisions to ensure local businesses thrive.
The import restriction bill which required importers of some 22 goods to seek the permission of the trade minister before importing them was suspended in December 2023 due to fierce opposition by the minority in parliament who held the view that it made the minister too powerful, violated international trade practices and bred corruption.
Also at the event was Dr. Tony Oteng-Gyasi who, in his remarks, urged the government to take bold decisions to protect local businesses. He added that local businesses were excited about the bill because it could have been a game changer for them.
Bawumia To Grant Tax Amnesty To Businesses
Meanwhile, the Vice President, Dr. Mahamudu Bawumia, has assured local businesses of a general tax amnesty to businesses that owe tax arrears, if elected as President of the Republic.
He was convinced the amnesty would allow businesses to start from scratch and encourage them to fulfil their tax obligations. He also promised to waive interest and penalties for defaulters of taxes for some years.
“To start the new tax system on a clean slate, my government will provide a tax amnesty (i.e. a complete exemption from the payment of taxes for a specified period and the waiving of interest and penalties) up to a certain year to individuals and businesses for failure to file taxes in previous years so that everyone will start afresh”.
Dr Mahamudu Bawumia
The flagbearer of the New Patriotic Party, Dr Mahamudu Bawumia, went on to discuss his vision to introduce citizen and business-friendly flat tax to protect local businesses and the poor.
“My administration will introduce a very simple, citizen and business-friendly flat tax regime. A flat tax of a percentage of income for individuals and SMEs (which constitute 98% of all businesses in Ghana) with appropriate exemption thresholds set to protect the poor”.
Dr Mahamudu Bawumia
According to Dr Bawumia, he is convinced this business-friendly tax regime would be an appropriate replacement for the corporate tax system and Value Added Tax (VAT).
Dr Bawumia made these revelations while discussing his vision for the country when elected as President. In what he described as ‘bold solutions’ to Ghana’s future, the Vice President was confident that a successful implementation of his policy initiatives would revive Ghana’s economy and improve livelihoods.
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