AGI Chairman Advocates for Reduced Duties on Raw Materials

Chairman of the Greater Accra Association of Ghana Industries (AGI), Tsonam Akpeloo, has called on the government to reduce duties on raw materials to boost local production.

He believes this move will empower small and medium startups, ultimately supporting the government’s 24-hour economy initiative.

Speaking on Woezor TV’s Breakfast show on Thursday, March 20, Mr. Akpeloo emphasized that the current import duty structure is counterproductive, with finished products attracting lower duties than raw materials.

This imbalance has led to the decline of many Ghanaian businesses, with some relocating to neighboring countries.

“So, you know, we import most of our raw materials. In fact, about 70% of our raw materials are imported to the country.

“And so what it means is that the government needs to take steps to ensure that the cost of doing business, and all the costs of importing raw materials, gets cheaper.

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While acknowledging the potential of the 24-hour economy policy, Mr. Akpeloo stressed that a concerted effort is necessary to discourage the importation of finished goods and promote local production.

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He proposed a reduction in duties on raw materials as a crucial step in achieving this goal.

“Currently, it’s so high; it’s really high. There are several taxes and duties you need to pay in order to import raw materials.

“So one of the biggest things that we’re looking forward to is the issue around VAT and how it is calculated.”