The Association of Ghana Industries (AGI) has warned the government against enacting a measure that would eliminate taxes on sanitary products imported from other countries while ignoring domestic producers.
According to the AGI, this move would be highly detrimental to the nation’s economy.
In a statement signed by CEO Mr Seth Twum-Akwaboah, the association expressed its belief that the call for the removal of duties on imported sanitary pads was misplaced.
The AGI emphasized the difficulties local sanitary pad producers face as a result of the influx of inexpensive and subpar imports. Since these imports are offered at closeout prices, domestic producers are under a great deal of strain. The few regional manufacturers who could grow their businesses are consequently only working at 30% of their potential.
While the idea of waiving duties or taxes on imported sanitary pads to make them more affordable for young women may seem appealing, the AGI argues that it would inevitably lead to the demise of the remaining local sanitary pad factories.
The AGI claims that removing all import duties would either cause the remaining factories to shut down or compel them to become merely importers. The association made the case that the government should offer the appropriate incentives and assistance so that local businesses can satisfy domestic demand rather than exempt imports from paying taxes.
By using this strategy, the nation’s economy and jobs would be protected.
Local producers of hygienic sanitary pads have expressly asked for exemption from Value Added Tax (VAT) and import tariff on imported raw materials in their petition to the government.
They think that these tax breaks will make sanitary pads more accessible for about 70% of young women in underprivileged areas.
The AGI warned the government against giving in to social commentary and popular conversation that favoured doing away with import taxes on sanitary pads.
Instead, they placed a strong emphasis on the value of taking into account local production, job development, and tax income. By encouraging domestic producers rather than relying on imports, the group urged the government to concentrate on its plan for industrial transformation.
