Business News of Friday, 3 March 2017
Government says apart from cutting down on taxes, it is committed to working assiduously towards ensuring a stable currency to help the business community.
Member of Parliament for Obuasi West Kweku Kwarteng says the government intends to realign statutory funds and put an end to budget overruns which leads to the deterioration of the cedi.
The commitment, which he made on Ghana Connect program on Joy FM Friday, was in reaction to the cry by one of the panel members, a trader from Abossey Okai, known only as Badu, wants government to work on the plummeting currency.
The traders have been jubilating over the abolition of taxes on imported spare parts, a move they say will positively affect the spare parts industry.
The Finance Minister on Thursday announced a number of taxes the Akufo-Addo government will either abolish or reduce.
In all about eight taxes, including taxes imposed on kayayei, and duties on spare parts have been abolished, with four other taxes reduced.
Even though the spare parts dealers have welcomed the move, they want government to work towards creating a stable cedi.
However, with their business heavily dependent on the performance of country’s currency, a weak cedi means they will need twice or thrice as much before they can import their spare parts which are sold in dollars or in pounds.
Badu hoped the government will translate the same commitment it used in abolishing the taxes to working on ensuring a stable cedi.
In a response, Kweku Kwarteng said apart from realigning the statutory funds, the government will use the district industrialization policy-the one-district-one-factory- policy as a long term measure towards ensuring a stable cedi.
He said the policy to help reduce importation of some goods into the country and at the same time increase exportation which will make savings and help create a more stable forex.
“We are committed to it as we can. We have rolled our sleeves. Fiscal consolidation is very important for us,” he said.