The government explains why it removes VAT on local textiles

Company News on Tuesday, January 22, 2019

Source: primenewsghana.com

2019-01-22

The Ministry of Commerce and Industry explained why the government applied a zero-rate value-added tax on VAT to local textiles for a period of three years.

The Ministry of Commerce said that this decision would make the local textile industry competitive and reduce operating costs before the implementation of the continental free trade agreement.

Deputy Minister of Commerce Carlos Ahenkora said the influx of unapproved textiles in the country was causing the collapse of the local textile industry.

"We consider the fact that our textile industry is dying and that in reality, people are importing textiles into the country through unapproved routes and are not paying the appropriate tariffs 30,000 people today can only increase 1,000 people. "

Government action will result in a revenue loss of 40.1 million GH ¢ per year.

Ahenkora said: "The government has thoroughly examined this situation and we are introducing another dimension to really protect our textile industry".