The Affiliation of Ghana Industries (AGI) says any coverage measure by the federal government that seeks to take away taxes on imported sanitary pads on the expense of native producers of similar will probably be very detrimental to the economic system.
It mentioned a lot because the waiver of duties or taxes on imported sanitary pads for younger girls to make the pads extra inexpensive might sound good, it will solely find yourself utterly wiping out the few native sanitary pad factories left within the nation.
The Affiliation in a press release signed by its Chief Government Officer, Seth Twum-Akwaboah, due to this fact, mentioned the decision for the removing of duties on imported sanitary pad was misplaced.
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“Our native producers of sanitary pads and diapers have been beneath strain from low cost and sub-standard imports, which promote at closeout. The few sanitary pad producers with the capability to develop are solely producing at about 30 per cent capability on account of the inflow of such imports,” it mentioned.
It mentioned to additional get rid of taxes on such imports would definitely collapse the few factories left or compel them to fold up and turn out to be mere importers.
“Our younger girls deserve inexpensive sanitary pads however granting tax waivers on imported sanitary pads will not be the way in which to go, with the best incentives and help, these native corporations can meet home demand, saving the nation jobs and foreign exchange,” it mentioned.
It mentioned as an alternative of removing of import duties, native producers of hygienic sanitary pads had since petitioned the federal government for exemption from Worth Added Tax (VAT) and import obligation on their imported uncooked supplies to make such merchandise extra inexpensive.
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“Our native producers imagine their sanitary pads will probably be extra inexpensive to an estimated 70 per cent of our younger girls in impoverished communities if granted such tax reliefs on uncooked supplies,” the assertion mentioned.
It mentioned the general public discourse and social commentary suggesting to authorities to get rid of import obligation on imported sanitary pads wanted circumspection and should be reconsidered vis-à-vis native manufacturing, job creation and income era for presidency.
“We warning the Authorities to not play to the gallery, however reasonably keep targeted on its industrial transformation agenda by incentivising native producers reasonably than imports,” it mentioned.
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It mentioned a number of international locations have been adopting countervailing taxes to “defend” their native markets, and that it will be unlucky for Ghana to do the reverse by eliminating taxes on such imports to make them cheaper, particularly the place there have been factories in Ghana producing similar objects.
