Reduction in taxes will boost local businesses – Kwaku Kwarteng

A Member of Parliament for Obuasi West Constituency, Mr. Kwaku Kwarteng has disclosed that the government’s intention to cut taxes and in some cases totally abolish them, is to boost the operations of indigenous businesses and to increase employment.

He said, the government has realised the stress some local businesses go through as a result of high taxes, hence the need to heed to their cry.

In an interview on CitiFm’s news analysis program, Eyewitness News, the MP refuted the argument of some sections of the public that reduction in taxes such as those on imported products will rather, promote the influx of inferior goods into the country. Some have also argued that, it is ironical that the time government intends to promote locally made products, it is also reducing taxes on imports, a situation which cripples local businesses.

Mr. Kwarteng also encouraged the Ghanaian public not to worry, since the government has put in place efficient mechanisms to raise funds to finance all the policies and programmes it announced in the 2017 budget statement.

The Minister for Finance, Ken Ofori Atta on the floor of Parliament on Thursday [March 2, 2017, announced about twelve taxes that have been abolished and a few others reviewed downwards.

Related: 2017 budget: Highlights of tax reliefs

Most of the taxes directly affect private businesses in sectors such as finance, real estate, trade, import and export.

He also announced the government’s commitment to roll out key programmes such as the one-district one-factory and one village one-dam this year.

Some members of the opposition National Democratic Congress (NDC), have cast doubt over about the ability of the government to achieve these programmes, but Mr Kwarteng says the government will realign its finances to achieve the desired results.

“The abolishing of special import duty on spare parts is designed to help businesses. If you want the businesses to grow, we need to remove their burden. All the tax removals that we have done, the stimulus package for industries that are dying, are all intended to boost our ability to produce and export. That will happen. We have rolled out these interventions and we are inviting the Ghanaian public to support us,” he said.

**Mpactglobal: Brilliance Gyekye

(Citi News contributed to this story)


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