An additional period of three months is expected to be granted, upon the start of the implementation of the tax stamp on textile prints from September 1, 2018, the Trade and Industry Minister, Alan Kyerematen has said.
So actual seizure of tax prints for non-compliance with the measure begins after December 1.
Speaking at the stakeholder consultative meeting with players in the textile industry, Kyerematen said, the operations of the taskforce on textiles will, within the grace period, monitor the degree of compliance with the measures that have been introduced.
These measures include the affixing of tax stamps and the restricted import entry.
The Minister explained that “based on the monitoring exercise of the tax force, we will be able to determine whether there is the need to extend the period, or that it has been so effective, there is no issue.”
“Until we do the monitoring and evaluation, I don’t think that on September 1, we should start going into the market to seize textile prints.”
From the start of the implementation of these measures, every textile import into the country will come through a single import corridor, specifically, the Tema port, the minister clarified.
These measure have become necessary, in order that government curbs the influx of smuggled and pirated textile prints into the country, as well as ensuring that government is able to collect the needed tax.
Currently, the combined production of the four local textile companies operating in the country does not exceed 40 million yards of prints annually, out of approximately 120 million yards demand.
Government has revealed it will soon provide stimulus support to the local manufacturers in the industry.
It is expected that, within a month, all the three or four textile manufacturing companies will have access to the stimulus financing.
This package will be between GHS 17.5 million to GHS 22 million.
By Joshua W. Amlanu