Mr Alan Kyerematen observes the new stamps
The Minister of Trade and Industry, Alan Kyeremsten, says it is time to bring back the glory of the local textile industry which used to be vibrant, and provided over 30,000 jobs in the last three decades.
He noted that the influx of pirated designs and gross infringements on trademarks of local textile manufacturers had adversely affected the textile industry in Ghana.
Ensuring a lasting solution to the issue, the government has scheduled November 1, 2022 to roll out the implementation of the textiles tax stamps in the country.
Speaking at the official launch of the Textile Tax Stamp yesterday in Accra, the Minister found it worrying the many unsuccessful attempts that had been made over the years during various administrations to fight against piracy and the infringements of Intellectual Property rights faced by the domestic industry.
He noted that even though the local demand for African prints is about 120 million yards per annum, the number of yards cleared at the port does not add up.
“In this regard, in 2018, the Ministry of Trade and Industry, under the Industrial Transformation Agenda of government, announced six policy measures aimed at finding lasting solutions to the challenges and also strengthening the textiles sector which can create millions of well-paid jobs for Ghanaians,” he said.
“They are the introduction and implementation of textiles tax stamps; import management systems; introduction of Designated Entry Corridors (Tema Port and Aflao Border for textile imports); provision of Incentive Packages for local manufacturers to make them competitive; attract Foreign textile manufacturers to set up or relocate their plants in Ghana; and reconstitute the Task Force to embark on effective market monitoring and surveillance,” he added.
The tax stamps
Mr Kyerematen noted that the new tax stamps mean no imposition of additional taxes to the manufacturers, retailers and importers.
“It is to give buyers the confidence and assurance that they are buying genuine fabric. It would also ensure that the smuggled African textile prints which intend make our locally produced prices uncompetitive are reduced the in the market and the right duties paid,” he said.
The new tax stamps are colour coordinated; that is red blue and green. The blue colour is meant to be affixed on existing or old stock, green is for local manufacturers while the red colour tax stamp is to be affixed on imported textiles.
The Trade Minister also disclosed that, before November 1, the traders are expected to visit the nearest district office of the Ghana Revenue Authority (GRA) to get tax stamps on existing stock.
He also urged local manufacturers and importers to do the same so as not to be harassed by the reconstituted tax stamp taskforce.
“We are here to officially initiate the roll-out of the textiles tax stamps which takes effect on 1st November 2022. However, the manufacturers have the option to start affixing the stamps on their products before this date. I wish to state that the success of the other policy measures hinges on the effective implementation of the textile tax stamps hence I wish to kindly appeal to all stakeholders to support the implementation of this programme,” he said.
“The operation of the textiles taskforce will be reviewed. The revision would ensure that stakeholder membership on the taskforce is adequately representative. The textiles taskforce would undertake monitoring exercises on all markets after the inception of the effective enforcement date scheduled for 1st March, 2023,” he added.
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