That, the association said, would help its members to plan ahead of time to benefit from the package, noting that it was ready to assist the government to implement the policy successfully.

Presenting the 2017 Budget Statement before Parliament, the Minister of Finance, Mr Ken Ofori-Atta, said the government intended establishing a National Industrial Revitalisation Programme with a stimulus package to cushion local industries to flourish.

According to him, the package will provide technical and financial assistance to existing companies which were facing operational challenges.

Government must come clear

Reacting to the 2017 budget at a press conference in Accra last Wednesday, a Vice-President of the association, Dr Yaw Adu-Gyamfi, said it was important for the government to come clear on the package.

“Even though we laud the government for the bold initiative it has taken to establish a stimulus package for local industries, we think the government must be clear about the amount of money it seeks to allocate to the sector,” he said.

Budget perspective

In his address, the President of AGI, Mr James Asare-Adjei, lauded the government for the bold initiatives it had taken to support industrial development in the 2017 budget.

“This year’s budget places emphasis on developing the production sectors (industry and agriculture) of the economy which experienced consistent decline in their contributions to gross domestic product (GDP) in the last five years,” he said.

Mr Asare-Adjei said the government must announce clear modalities which would drive the agenda for the one district, one factory policy.

He indicated that the AGI continued to receive expression of interest from members and non-members in investing in the programme.

“We advise that the modalities should include exemptions from corporate taxes, use of piece rate to spur production, among others,” he added.

Tax exemptions

Mr Asare-Adjei also commended the government for the steps it had taken to abolish and reduce some taxes which were hampering growth in the business sector.

However, he said, there was the need for the government to remove import duties on raw materials and machinery for production within the context of the Economic Community of West African States (ECOWAS) Common External Tariff protocol.

He said the association was ready to partner the Ministry of Trade and Industry (MoTI) to provide the necessary input and criteria for the determination of what constituted raw materials in order to prevent the abuse of tax incentives.

Energy

On energy, the association proposed that the least expensive power generation sources be dedicated to strategic industries in the country.

The president also indicated that the cost of electricity was affecting the operation of businesses, making them unproductive and uncompetitive.