Textile dealers in the country have agreed to bear the full cost of the tax stamp being introduced by the Trade Ministry.
The introduction of the stamp, which takes effect from September 1, was agreed on at a meeting between executives of the textiles companies and the Trade Minister, Alan Kyerematen, as a way to curb the influx of fake textiles, and the evasion of taxes by importers of such products.
The introduction of the tax stamp regime was met with protest from some beverage companies, who claimed it will add additional cost to their operations.
Speaking to Citi Business News, the General Secretary of the Industrial and Commercial Workers Union, Solomon Kotei said the local producers will pay for the stamp.
“The stamp is going to give the retailers guarantee and help them to sell their products. So whatever margin they have to contribute with to make this a success, they are ready to pay”, he noted.
There are only four textiles companies operating in the country.
The four, have had to lay off workers due to high operational cost and the influx of cheaper pirated goods onto the local market.
But Mr. Kotei is confident a GHS22 million stimulus package to be provided by government will enhance the operations of the local textiles producers.
He stated further that “the stimulus package will help and they have also reduced the cost of electricity so all that will substitute for the cost of the stamp.”
Meanwhile, the Coalition of Textile Workers have told Citi Business News they may not lay off workers as they are optimistic new measures put in by the Trade Ministry will solve the challenges facing the local textile industry.