The following are highlights of the expectations of this year's budget:
The Association of Ghana Industries (AGI):
- * Reduction or elimination of some of the taxes (Corporate income tax, ECOWAS Levy, EDIF Levy, NRL Levy, Inspection Fee and Processing fee to make local industries competitive.)
* Impose special tax on importation of cheap steel products in order to help grow local steel mills. (Ghana currently has the lowest import duty -1 0.0 per cent - on iron rods.)
* Reduce the 140 per cent excise duty on locally manufactured cigarettes.
* Zero rating for agricultural and pharmaceutical products.
* Review Tax Law Regulations LI 1675 which defines withholding tax rates for companies.
* Sustain micro-economic discipline.
*Provide adequate funding for agriculture and ensure that private sector activities
are enhanced to meet the growing aspirations of Ghanaians.
*Increase funding for agriculture, education and infrastructure development
*Use budget to provide a clear set of economic stimuli and further tax incentives for businesses to ensure available long-term funds for planning.
* Maintain VAT at 12.5 per cent
* Increase support for small-scale businesses through NBSSI and affiliate institutions
Databank Financial Services expects that:
* 2002 budget should sustain microeconomic discipline.
* Growth of economy should be the main focus.
* Increase revenue generation to help balance government spending.
* Stick to strict fiscal discipline.
* Address debt overhang for Ghanaian companies.
* Transparent divestitures.
* Intensify efforts to reduce inflation to below the current 23.5 per cent.
* Increase budget allocation for education and agriculture.
The World Bank Office in Accra expects the government to:
* Maintain microeconomic discipline.
* Government should spend what it has.
* Increase revenue collection base.
