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Business News of Friday, 9 November 2018

Source: My News GH

Tax stamp not panacea to inferior textiles on market – Textile Union schools gov't

The Textiles, Garment and Leather Employees Union, has disputed that government’s plan to introduce tax stamp to halt the importation of substandard goods into the country indicating it is not the best solution to the existing problem their industry is faced with.

The government has introduced a tax stamp system where every product would have to be embedded with aimed at checking fake ones on the market.

However, the General Secretary of the Union in an interview is quoted as saying “personally as I speak, I don’t buy that idea. The tax stamp will only help the government to generate revenue and that is OK. But to check counterfeiting, that will never and ever happen”

This is not the first time the Union is fighting for fair treatment by the government to grow the local textile industry.

The Union and the government have on numerous occasions embarked on exercises to clamp down on fake textiles on market but producers of the so-called counterfeit textiles unlawfully use designs created by the local companies while they sell them at cheaper prices making it difficult for the local companies to compete

General Secretary of Textiles, Garment and Leather Employee Union, Mr. Abraham Koomson said the introduction of tax stamp by the government would not save the situation.

According to him, the only way to check counterfeiting is for government to form a strong tax force to make sure there are no more counterfeit clothes at points of sale to clamp down the situation.

The Union also argued there are fake textiles on the market because government’s tax force has become defunct hence giving people the gut to display counterfeit clothes openly without fear.

“If people are able to print money to deceive others, how won’t they print tax stamp to sway their way to sell inferior goods on the market”, he asked.

With the issue of the consumers’ contribution to check counterfeit and their choice of product, Mr. Kumsoon noted that some of them may not even care about the quality of the product they buy.

According to Textiles, Garment and Leather Employee Union, the government will create a lawless state if it even gives the local industry tax exemption and still allows the importation of inferior textiles from China to compete with the local companies like Akosombo Textile, GTP among others.