Ghanaian local manufacturers to enjoy both VAT deferment, inbound manufacturing facility

Ghanaian local manufacturers who import raw materials can now enjoy both the Value Added Tax (VAT) deferment and the inbound manufacturing facility.

This is because, the Ghana Revenue Authority (GRA) after lengthy negotiations with the leadership of the Association of Ghana Industries (AGI), has agreed that local manufacturers can continue to enjoy the two tax reliefs.

The aim is to help ease frustrations local manufacturers had to go through in importing raw materials for production.

Mr. Seth Twum-Akwaboah, Chief Executive Officer, AGI, who stated this, said the leadership of AGI had to step in to negotiate with the GRA to maintain the two tax reliefs after the tax authority decided to cancel one of them in April, this year.

“The AGI had to step in and negotiate with the GRA for considerations for businesses to enjoy the two again, and bring some relief to them,” he stated at the annual general meeting and job fair of members of the association in the Ashanti, Bono, Bono-East and Ahafo Regions, in Kumasi.

He said: “In the case of raw materials, because you process, it takes about three months to get it from the port, process, get your monies paid.

“… So, if you are collecting a VAT on behalf of the government and the government says if you bring your raw materials pay your VAT upfront before you collect it from the consumer, it is not fair, it is locking up your working capital.”

The event was held under the theme: “Empowering Growth: Building a Strong Workforce for Tomorrow.”

The CEO indicated that the Association had in the last 10 months led a number of policy advocacy with the aim of creating a conducive environment for businesses to thrive.

Among them are partnerships with the Ghana Enterprise Agency (GEA) and Mastercard Foundation, targeting about 4,800 enterprises for refresher training programmes and financial empowerment.

On access to finance, Mr. Twum-Akwaboah noted that AGI had networked and collaborated with many financial institutions to provide easy access to medium to long-term loan facilities for members.

The job fair was used to showcase products from members, open platforms for job seekers to interact with members for coaching and guidelines.

Source: GNA

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