Despite ceaseless calls on the government to scrape the 20% taxes on sanitary pads, the Association of Ghana Industries (AGI) believes people pushing such agenda are disoriented.
According to AGI in a statement on Wednesday, June 21, the government succumbing to such pressures will see a total collapse of local manufacturers in the same business, a move which they believe is unhealthy and will cause the shaky economy to further cripple.
The association although acknowledged the hike in prices of these products and reckoned the need to make them affordable, it says it cannot recommend the removal of duties or taxes on the imported goods which will be detrimental to the operations of local manufacturers.
“Much as the waiver of duties/taxes on imported sanitary pads for our young women to make the pads more affordable may sound good, this will only end up completely wiping out the few local sanitary pad factories left in the country”, the statement read.
They stressed that local manufacturers are currently grappling with the feisty competition to stay in business.
“Our local manufacturers of sanitary pads and diapers have been under pressure from cheap and substandard imports which sell at closeout.”
“Some of the factories are already out of business and have sent workers home. To further eliminate taxes on such imports will certainly collapse the few factories left or compel them to fold up and become mere importers.”
However, the AGI has proposed to the government that instead of considering dancing to the tune of the public, it might as well consider re-engineering local manufacturers in the sanitary pads industry to resuscitate their business while saving the country and its forex at large.
“With the right incentives and support, these local companies can meet domestic demand, saving the country jobs and forex.
They also suggested tax exemptions on VAT and import duty on raw materials into the country, a petition which has since been laid before the government.
Meanwhile, the association has asked government not to be distracted in its bid to foster industrial transformation, adding that it could explore policies in attracting investments, creating jobs and ultimately restructuring the shape of the economy from an import to export oriented one in the future.
By: Leonora Enyonam Annoh | Metrotvonline.com | Ghana
