Bankers have urged government to regulate its tax cut policies on imports in order not to miss out on the need to reduce imports and tame the depreciation of the cedi.
In their view, the high imports have partly contributed to the perennial depreciation of the local currency in relation to major international trading ones.
The cedi has begun recording some stability after period of sharp depreciation early this year.
But the Managing Director of Stanbic Bank, Alhassan Andani tells Citi Business News the situation could escalate if tax incentives on imports are not restricted to export yielding ventures of the economy.
“The government has got to look at whether the reduction in taxes have led to increase exports or whether to reduce the prices and increase demand for those imported goods that do not impact on the export subsector,” he said.
The NPP government in its 2017 budget announced that some eight taxes have been abolished to ease the burden for businesses to be competitive.
The tax cuts included the 1 percent special import levy on imported spare parts.
Parliament has since amended regulations on four of the taxes that have been abolished.
Mr. Andani added, “If for example the taxes reduced on spare parts are going to affect those into mechanized agriculture then that is good…other than that, if the tax cuts will only be to the benefit of the privileged who can afford vehicles, then the impact wouldn’t be much appreciated in stemming the cedi’s depreciation.”
Stanbic Bank re-launches Executive Banking Product
The Stanbic bank MD spoke to Citi Business News at the sidelines of the launch of the bank’s revamped Executive Banking product.
The Stanbic Executive Banking among others offers tailor made solutions to clients.
The offer ranges from land financing, retrenchment cover, special lifestyle privileges, free cheque books among others.
Speaking at the launch, the Head of Personal and Business Banking at Stanbic Bank, Nana Benneh explained that he anticipates that the offers on mortgages should help reduce the rising housing deficit among the population.
“For a number of our customers who want to achieve a home, we think it will make home accessible to majority of Ghanaians as they will be saved the burden of meeting up the cost of their homes, upfront.”
By: Pius Amihere Eduku/citibusinessnews.com/Ghana