Government asked to suspend 10% timber export tax

An appeal has been made to the government not to allow the poor state of the country's economy to mislead it to take hasty economic measures that might worsen the plight of Ghanaians.

Mr Isaac Kofi Nketiah, National Treasurer of the Ghana Timber Association (GTA) made the appeal when commenting on the imposition of 10 per cent timber export tax in an interview with newsmen at Takoradi on Wednesday.


He entreated the government to meet the saw millers as early as possible to agree on a compromised tax that would be beneficial to both the government and sawmillers.


This will enable several tons of sawn timber, piled up in the yards of sawmills to be exported without further delay.


Mr Nketiah said apart from the payment of other taxes, saw millers are also faced with high monthly electricity bills and therefore the payment of 10 per cent tax would erode the little profit they make.


This situation, he pointed out, might compel some saw millers to lay off workers. He suggested that in future, the government should resort to consultations and education of stakeholders of the various sectors of the economy before coming out with taxes.


This would avoid confrontation between the government and the stakeholders, which does not augur well for the smooth administration of the country.

"In its efforts to resuscitate the economy, care must be taken not to drain all the oil and lubricants from the industrial engine that ensures the growth of the economy," Mr Nketiah advised.


He said the government's "all inclusive" policy should not be restricted to inviting people to serve in government alone but should be extended to other key areas of governance.


Mr Nketiah who is also the Managing Director of Nobco Timbers appealed to saw millers and industrialists to be honest in their dealings with the government by refraining from evading the payments of correct taxes.


Mr Nketiah appealed to members of the GTA in the Ashanti region not to allow themselves to be used by selfish individuals to create confusion within the association.


The timber industry, he said, is faced with many problems, which need to be tackled with the concerted effort of all members.