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Business News of Tuesday, 22 January 2019

Source: Prime News Ghana

Government explains why they remove VAT on local textiles


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The Ministry of Trade and Industry has explained why government have zero-rate Value-Added Tax, VAT, on local textiles for a period of three years.

The Trade Ministry said the decision will make the local textile industry competitive and also reduce the cost of operation before the implementation of the Continental Free Trade Agreement.

Deputy Trade Minister, Carlos Ahenkora said the influx of unapproved textiles in the country is collapsing the operations of the local textile industry.

“We consider the fact that our textile industry is dying and in fact, the people import textiles into the country through unapproved routes and they also don’t pay the appropriate duties, this is affecting our textile industry, the industry that use to employ over 30 thousand people today can only boost 1 thousand people.”

The action by government will cost revenue loss of GH¢40.1 million annually.

Mr Ahenkora said, “government had a firm look at this situation and we are coming out with a different dimension to actually protect our textile industry.”

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