Calls for removal of tax duties on imported sanitary pads is misplaced – AGI

The Association of Ghana Industries (AGI) has cautioned government against any policy measure that seeks to remove taxes on imported sanitary pads, at the expense of local manufacturers.

A statement issued by the Association and sighted by GhanaWeb Business said a decision to remove taxes on the key import item will be detrimental to the Ghanaian economy.

“Much as the waiver of duties/taxes on imported sanitary pads for our young women to make the pads more affordable may sound good, this will only end up completely wiping out the few local sanitary pad factories left in our country.”

“Therefore, the Association is of the view that the call for the removal of duties on imported sanitary pads is misplaced. Our local manufacturers of sanitary pads and diapers have been under pressure from cheap and sub-standard imports which sell at closeout.”

It added that local manufacturers of sanitary pads that have capacity to expand their operations are currently only producing at about 30 percent on account of the influx of such imports

“Some of the factories are already out of business and have sent workers home. To further eliminate taxes on such imports will certainly collapse the few factories left or compel them to fold up and become mere importers,” the AGI noted.

“Our young women deserve affordable sanitary pads but granting tax waivers on imported sanitary pads is not the way to go. With the right incentives and support, these local companies can meet domestic demand, saving the country jobs and forex. Instead of removal of import duties, local manufacturers of hygienic sanitary pads have since petitioned Government for exemption from VAT and Import duty on their imported raw materials to make such products more affordable,” the statement added.

Read the full statement by the AGI below: