Garment, textiles dealers call for reduction in tariffs

Accra, Oct. 19, GNA- SPINnet, an association of indigenous manufacturers of textiles and garments, on Thursday called for reduction in tariffs and controlled limitations to accessing tax incentives in order to produce and sell at affordable prices Made-in-Ghana garments. Nana Ekua Busia, president of the association, observed that although there had been passionate appeals to government through the Revenue Agencies Governing Board to come to their aid by reviewing the present system, little had been done to realise the zero rated tax regime.

"The challenge facing us, however, is that so far none of our members herein seated has ever been able to take advantage of this zero rated tax regime by importing directly," Ms Busia said at a press conference in Accra.

She said consequently members had 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." She said the association had called on authorities to 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.