• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

AGI Urges Government to Reform VAT, Says VAT System is Crippling Local Businesses

7 months ago
in Business, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
89
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

AGI Urges Government to Reform VAT, Says VAT System is Crippling Local Businesses

The President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim-Darke, has strongly criticized the current Value Added Tax (VAT) system, describing it as “the killer in the room” that is crippling local businesses.

Speaking on Joy News’ PM Express on Thursday, February 20, Dr. Ayim-Darke called for an urgent overhaul of the VAT regime, warning that its distortions are stifling the operations of businesses, particularly small and medium-sized enterprises (SMEs).

VAT System Causing Market Distortions

Highlighting the inconsistencies in VAT application, he explained how businesses in the same industry, importing identical raw materials, face different tax treatments due to VAT complexities.

“Imagine two companies operating in the same sector, both importing the same product and paying the same HS code for raw materials. Yet, because of how the VAT is applied, their treatments are completely different. That inconsistency is distorting the market and hurting competitiveness,” he stated.

AGI’s Proposal: A Fair VAT System

RelatedPosts

EIA Rattles Oil Markets With Reports of Crude Oil, Product Builds

Dams for Development? Unpacking Tensions in the World Bank’s Hydropower Policies

Chart of the Week: Dollar’s Share of Reserves Held Steady in Second Quarter When Adjusted for FX Moves

Dr. Ayim-Darke emphasized that the AGI’s foremost proposal to the Finance Ministry is a rationalization of the VAT structure, urging the government to implement a uniform VAT system rather than embedding levies that increase business costs.

“If you want to implement a total VAT at 21%, then we say fine, let’s do input-output VAT properly. But don’t embed levies within it that end up distorting our entire operations. When you do that, businesses are left with no choice but to pass the cost onto consumers, which defeats the purpose of fair taxation and stifles economic growth,” he argued.

Call for Fairness and Compliance

He stressed that VAT reform should not be limited to rate adjustments but should also ensure fairness and compliance.

“Once VAT is rationalized, it becomes the government’s responsibility, through its agencies, to oversee compliance and ensure proper collection. Businesses shouldn’t be burdened with inefficiencies in the system,” he noted.

Government’s Tax Measures Insufficient

While acknowledging the government’s recent tax adjustments, including the removal of some COVID-related and betting taxes, Dr. Ayim-Darke insisted that the primary concern remains the VAT system.

“Yes, we welcome the steps taken on those taxes—it’s a 60% pick of our concerns—but let’s not kid ourselves. The VAT is the biggest hurdle. It’s the elephant in the room—or as I call it, the killer in the room. If we don’t streamline it now, the repercussions for local industries will be dire,” he cautioned.

Dr. Ayim-Darke concluded with a strong call to action, urging the government to prioritize VAT reforms to support local industries.

“Our message is simple: rationalize the VAT. Remove the distortions, level the playing field, and let’s support local industries to thrive instead of suffocating them under unfair tax structures,” he stated.

His comments add to growing concerns from the business community about Ghana’s tax regime, as industry players continue to push for pro-business policies that enhance competitiveness and growth.

Tags: AGIAGI Urges Government to Reform VATSays VAT System is Crippling Local BusinessesVAT

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

Sinner Dominates Tien to Secure China Open Title

President Mahama Vows Tougher Action on Cybercrime, Promises Collaboration with Global Partners

Government to Establish Cyber Security Fund to Bolster Digital Defences

Headline Inflation Hits Single-Digit With 9.4% Rate in September 2025

Bank of Ghana Prices 1oz Gold Coin at GHS 49,131.99

Ghana Hosts IGAD Delegation on Land Governance Exchange

Trending

Business

EIA Rattles Oil Markets With Reports of Crude Oil, Product Builds

October 1, 2025

EIA Rattles Oil Markets With Reports of Crude Oil, Product Builds Crude oil inventories in the United...

Dams for Development? Unpacking Tensions in the World Bank’s Hydropower Policies

October 1, 2025

Chart of the Week: Dollar’s Share of Reserves Held Steady in Second Quarter When Adjusted for FX Moves

October 1, 2025

Sinner Dominates Tien to Secure China Open Title

October 1, 2025

President Mahama Vows Tougher Action on Cybercrime, Promises Collaboration with Global Partners

October 1, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.