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GHANA: Garment dealers demand reduction in tariffs

ACCRA: An association of indigenous manufacturers of textiles and garments, SPINnet, has called for reduction in tariffs and controlled limitations to accessing tax incentives in order to produce and sell Made-in-Ghana garments at affordable prices.

Ms. Nana Ekua Busia, president of the association said that there have been fervent appeals made to the government through the Revenue Agencies Governing Board to come to their aid by reviewing the present system, but little had been done to realize the zero rated tax regime.

So far none of our association members have ever been able to take advantage of this zero rated tax regime by importing directly, Ms Busia said at a press conference in Accra.

The members have no other alternative but to buy their raw materials on the open market from suppliers who did not have such zero rates advantage thereby making production cost high.

Ms Busia said they continued to suffer indirect high tariffs due to the situation adding "in spite of government's good intentions, the challenge facing us is how to realise the zero rate."

The authorities should look into how best the cost of the essential raw materials bought on the market could be tax-adjusted as was the original intention where customs duty paid would be refunded to members.

Ms Busia said the association together with the Business Sector Advocacy Challenge had started an advocacy project, which sought the best possible means of reducing the cost of inputs of the essential raw materials.

Source: Agencies • News Courtesy: BharatTextile.com