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Business News Mon, 21 Jan 2019

Government suspends tax stamp policy on textile

Government has suspended plans to begin the implementation of the tax stamp policy for the textile industry which is slated for this month.

The move is to ensure additional security features are added to the stamp.

Government revealed last year of its plans to extend the tax stamp policy to textiles in order to curb smuggling of the product in the country and to increase jobs in the sector.

The Tax Stamp Policy emanates from the Excise Stamp Act, 2013 (Act 873).

The policy requires that specified excisable products are affixed with tax stamps with specific features designed and supplied by the Ghana Revenue Authority before they are delivered ex-factory, cleared from any port of entry and presented for sale.

Speaking to Starr Business, the Head of Tax Policy at the Finance Ministry Daniel Nuer said the policy will only be extended to the textile industry after modalities for its implementation are addressed.

“Now we are drawing up a timetable to come out with the modalities that are needed to implement the system,” he said, adding the Finance Minister will soon come out with an executive instrument giving the exact time for implementation as determined by law.

“Until we sort out the modalities…it’s teamwork. So we need to hear from the technical team because there are some technicalities to be sure that all the modalities are in place then we can fix a date,” he added.

The Industrial and Commercial Workers Union believes the delay will inure to the benefit of players in the textile industry.

The General Secretary of the ICU, Solomon Kotei said: “Government has remained focused on this matter.”

Source: Starrfmonline.com
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