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Business News of Thursday, 24 May 2018

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Trade Ministry starts tax stamp for textiles on September 1st

Traders of substandard textiles may have to redirect their businesses as the Trade Ministry launches a major clamp down starting September 1st 2018.

From September, producers and importers of textiles would have to affix a stamp on their products.

This is to avoid seizure by an anti-piracy taskforce put together by the Trade Ministry and the Industrial and Commercial Workers’ Union (ICU).

The new directive also follows a meeting between the Trade Ministry and the ICU on Wednesday, May 23, 2018, to discuss ways of saving the local textiles industry from collapse.

It equally forms part of efforts to curb the importation and smuggling of fake and cheap textiles into the country.

Addressing the media after the meeting, Trade Minister, Alan Kyerematen said failure to affix the stamp will warrant severe sanctions.

“Apart from making sure that government earns the revenue, it will also be necessary that the government regulates the trade in this sector particularly in the markets and retail centre…every textile will have tax stamp to be issued by the Finance Ministry…Once this is done, it is easier to identify the pirated goods in the sector,” he stated.

The four textiles manufacturing companies operating in the country currently including Volta Star and GTP, have had to lay off workers due to high operational cost and their inability to compete favorably in the market.

The textile workers have also protested against the unfair competition especially from the pirated textiles.

Meanwhile, local textile producers may have to contend with competition from imported ones until they are able to fully meet the demand for textiles.

Local textiles producers are able to meet only a quarter of the demand.

Of the 120 million yards of fabric needed annually, local producers are able to supply only 30million yards.