Fix VAT first before celebrating tax cuts – AGI president tells government

Dr. Humphrey Ayim-Darke, President of the Association of Ghana Industries (AGI), has warned that the current VAT system is crippling local businesses, calling it "the killer in the room."

In an interview on Joy News' PM Express Business Edition, he explained that the VAT system distorts market operations, particularly for SMEs, by unfairly treating businesses that import identical raw materials in the same sector.

Dr. Ayim-Darke proposed a 21% VAT overhaul based on an input-output model. He aimed to eliminate unfair cost burdens on consumers and ensure better compliance. He stressed that VAT reform should be prioritized over recent tax cuts to protect local industries.