Tax stamps will revive local textile industry

Mr Robert Ahomka-Lindsay, Deputy Minister for Trade, has said the introduction of tax stamps on textile products is meant to ensure discipline and revive the once vibrant local textile industry.

Apart from facilitating the work of regulators including revenue authorities in checking the influx of unauthorised goods, the advanced security features would fight piracy, and help customers to make informed choices on products.

Mr Ahomka-Lindsay was addressing a meeting with stakeholders at Denu in the Ketu South Municipality on the tax stamps, to be introduced on November 14, 2018.

He said the Ministry would provide adequate space for sensitisation, and tour major business districts, including Takoradi, Accra, Kumasi, and Tarkwa, to help deepen understanding and compliance.

The Minister said the stamps were going to be distributed free of charge, and would come in two different forms to make it easier to distinguish between locally-made and imported goods.

He said a three-month window would be given to traders to clear existing stocks before the roll-out.

Mr Ahomka-Lindsay added that the programme was in six major components, and included the establishment of a new import regime that was going to make the Tema Port the only entry point for imported textiles.

The Ministry would also work with local textile manufacturers - build their capacities, and at the same time encourage foreign manufacturers to establish production centres in the country.

The Deputy Minister said an import management committee had been formed and mandated to manage the importation of textiles, and underlined their determination to empower the reconstituted tax force to enforce laws in the sector.

He called on all stakeholders, particularly, the border agencies to support efforts at securing for the nation its’ share of trade activities, for national development.

Mr Kweku Boadu, Head of Corporate Affairs at Grascom Consortium, manufacturers of the stamps, said the stamps were being developed in close collaboration with stakeholders.

These would feature a two-dimension bar code bearing real time data on the products.

He said with a mobile based application, data on the stamps could be assessed by regulators and customers alike.