The Association of Ghana Industries (AGI) has issued a warning to government to desist from any policy that will seek to remove taxes on imported sanitary products into the country.
The AGI argues that the country’s economy will be negatively affected if government scraps taxes on the products at the expense of local manufacturing companies.
A statement released by the group said although removing the taxes on the products will make it more affordable, it will also lead to the collapse of the few remaining local sanitary pad factories in the country.
“The Association of Ghana Industries (AGI) wishes to caution Government that any policy measure that seeks to remove taxes on imported sanitary pads, at the expense of local manufacturers of same will be very detrimental to our economy.
“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 our country. Therefore, the Association is of the view that the call for the removal of duties on imported sanitary pads is misplaced,” the statement said.
Meanwhile, they urged government to exempt them from Value Added Tax (VAT) and import duty on imported raw materials, to make their products more affordable.
“The few sanitary pads manufacturers with capacity to expand are only producing at about 30% capacity on account of influx of such imports. 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.
“Instead of removal of import duties, local manufacturers of hygienic sanitary pads have since petitioned government for exemption from VAT and Import duty on their imported raw materials to make such products more affordable.”
The statement further asked government to carefully think through the public outrage that import duties on the imported sanitary pads should be eliminated.
“The public discourse and social commentary suggesting to Government to eliminate import duty on imported sanitary pads need circumspection and ought to be reconsidered vis-à-vis local manufacturing, job creation and revenue generation for Government.
“The few local manufacturers of sanitary pads face imminent collapse and AGI calls on Government to intervene as soon as possible. We caution Government not to play to the gallery, but rather stay focused on its industrial transformation agenda by incentivizing local manufacturers rather than imports,” the statement added.
