Government exempts textile manufacturers from VAT

Business News of Monday, 14 January 2019

Source: goldstreetbusiness.com

2019-01-14

The Coalition of Textile Workers has hinted that cost of local cloth would be reduced

The Coalition of Textile Workers reckons they can now compete fairly in the market given government’s decision to exclude local textile manufacturers from paying certain taxes and VAT.

John Ackon of the coalition says the burdensome payment of Value Added Tax (VAT) was further pounding the textile companies into an inevitable death.

He stated the tax component meant the cost was passed done to the depots, wholesalers, retailers and ultimately the customers who complained of the high cost the locally made fabrics.

With the easing of the taxes, Mr. Ackon sees no reason why cost of local cloth should not reduce. He was also delighted about government’s plan to roll out the tax stamp on fabrics.

“In terms of design, colours and creativity, the local fabrics are superior but pirating our designs and selling it cheaply affected our operations,” he submitted.

The tax stamp roll out will have a vetting committee and a task force to arrest those selling pirated materials.

The Coalition of Textile Workers, comprises employees of the Akosombo Textiles Limited (ATL), Ghana Textile Printing Limited (GTP), Printex and Volta Star with many having gone on protest marches beseeching President Akufo-Addo to intervene as a sector which had a 30,000 workforce barley had 3,000 now.

The tax stamp will also help government to generate revenue while checking counterfeiting.

The Union and the government have on numerous occasions embarked on exercises to clamp down on fake textiles on the market; hopefully the new regime can stop the producers of cloth with pirated designs from competing with local textile companies.

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