Government introduces tax stamp policy for local textiles

Government introduces tax stamp policy for local textiles

- The government has introduced the tax stamp policy to locally manufactured textiles

- This was announced by the Minister of Finance, Ken Ofori-Atta during the 2019 budget hearing

- The move is to ensure that the products are quality, and also have their taxes paid before they enter the market

The government has announced its decision to include locally-manufactured textiles to the tax stamp policy.

The Tax Stamp Policy, which emanates from the Excise Stamp Act, 2013 (Act 873) was launched in Accra recently.

Tax Stamps are small stickers with security features supplied by the government to some manufacturers and importers to be fixed on to their products before they are released onto the market.

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For instance, when one buys a bottle of water, the tax stamp is fixed on the head of the bottle cover to show that its tax had been paid by both the company and consumer.

The presence of the Tax Stamps on a product, therefore, provides enough guarantee of product authenticity, according to the government.

They are also to show that the products are wholesome and also that the right taxes have been paid for it.

Government has said it now plans to let the policy cover local textiles as a check against the influx of fake Chinese imitations and smuggling which is killing the industry.

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The Minister of Finance, Ken Ofori-Atta, made this revelation during the recent budget reading.

According to him, the move will also ensure that smuggling and counterfeiting of textiles will be curtailed, while employment is boosted in that sector.

He is quoted by Mynews.gh.com to have said: “Ghana used to have a textile industry that employed around 30, 000 people, but in recent years the industry has fallen on hard times, and now the number employed is only around 5,000.”

“It is Government’s aim to help revive this industry, which could be a big source of employment. So, in order to curtail smuggling and counterfeiting, which have been undermining the industry, we will extend the tax stamp policy to the textile products,” he revealed.

“Further, to make industry price-competitive, Government will zero-rate VAT on the supply of locally made textiles for a period of three years.”

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Meanwhile, the textiles industry has witnessed hard times recently.

For instance, YEN.com.gh reported the news of Akosombo Textiles Limited laying off some workers.

The reason being that the company was struggling financially due to pirating and no support from the government.

In a related development, the government has announced that it will spend a whooping GHC73.4 billion in 2019.

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Source: Yen.com.gh

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