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Sat, Aug

MOTI MOVES TO PROTECT TEXTLE INDUSTRY

Business & Economy

The Minister of Trade of Industry, Alan Kyerematen, has announced moves to be taken by government over the next few months to protect the indigenous textile industry.

The Minister of Trade of Industry, Alan Kyerematen, has announced moves to be taken by government over the next few months to protect the indigenous textile industry.

 

This is in response to recent petitions sent to the Ministry by the textile producers and their workers.

Among the things government would be doing to protect the textile industry is the introduction of a tax stamp on textile imports.

Mr Kyerematen made the announcement when he interacted with the media after substantive dialogue with representatives of the worker’s union of the textile manufacturing companies, together with representatives from the Industrial and Commercial Workers Union in Accra.

He stated that the new measures to be taken were based on agreement reached between the Ministry of Trade and Industry, Finance Ministry and members of the entire textile companies in the country.

The Trade Minister revealed that on Friday, June 1, 2018; the Ministry of Finance would engage stakeholders in the textile industry on the introduction of the tax stamp.

“We believe that, apart from making sure that government also earns the revenue that it deserves from the textile trade, it would also be one of the most significant measures introduced for us to be able to regulate the trade in this sector, particularly, in the markets,” he clarified.

He explained that the measure would enable relevant stakeholders in the industry identify every piece of fabric coming into the country as well as to identify pirated textiles.

“Once this is done, it is easier for us to be able to monitor those who are selling pirated goods, counterfeit or contraband goods in the textile sector,” he stressed.

Furthermore, Mr Alan Kyerematen disclosed that his outfit would kick-start the implementation of import restrictions on textiles on September 1, 2018, adding that the move would be managed by government and textile industry players in the country.

He believes the sustainability of the textile companies is being undermined as many fabrics find their way into the local markets without proper checks, hence the need for this regulation.

The Minister explained to the gathering that the three months intervals between the regulation of the tax stamp and import restriction was to enable the flush-out of illicit textile prints in the markets.
 
“To ensure that all those who are engaged in this negative act of bringing goods that are not customed or that are pirated, will have an opportunity within the next three months, as it were, to clear them out of the market,” he emphasized.

In addition, the Minister stated that the textile taskforce who work only at the nation’s borders would be allowed to operate within the markets as well.

“If you are retailer in the market and you want to retail textile prints in this country, first make sure you are buying it from authorized import vehicle and, in addition, it is affixed with the tax stamp…By extension this means that any textile print found anywhere in this country other than this authorized channel automatically is deemed to be contraband and it is going to be seized,” the Trade Minister pointed out.

As part of the measures to be taken, the Minister stated that there would be stimulus support on the part of government as well as the use of government’s procurement system to support the textile companies.

He explained that it would help boost the efficiency and effectiveness of the textile companies in the country.

Additionally, the Minister indicated that, in order to ensure the sanity of the textile industry, attractive framework would be made for companies outside the country to establish their textile factories in the country as part of government’s industrial development agenda.

In his contribution, the General Secretary of ICU, Solomon Kotei, expressed worry that even though the country had over 30 textiles companies, the number has reduced to virtually four.

He expressed satisfaction at the five thematic possible solutions to revive the country’s textile industry from challenges that had bedeviled it over the years.

Mr Kotei pledged the commitment of the Union by continuing to be watchdog to monitor the activities of agents of pirated and smuggled textile prints into the country as well as people funding them.

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