Producers want a review of import duty on raw materials meant for production so as to make locally-made products competitive.

Ideally, the Association of Ghana Industries (AGI) – which is the umbrella-body of leading local manufacturers – says such taxes are paid after production and not directly on import of raw materials, as it is the case in this country.

“We want importers of raw materials to be considered, because elsewhere producers do not pay duty on import said AGI’s Chief Executive Officer, Seth Twum Akwaboah.

He spoke during the 11th Association of Ghana Industry and Quality Awards launch in Accra, and lamented that making producers pay duty on imported raw materials and then also taxing the final product constitutes an unwarranted double tax burden on them.

He said these taxes end up being passed on to the final consumer, and are part of the reason domestically-made goods are uncompetitive in their pricing relative to imported ones.

Mr. Akwaboah was responding to a question on the major factors affecting domestic producers, and said government needs to be considerate when it comes to import of raw materials for onward production because it is the common practice everywhere.

Apart from this, he cited cost of utilities as another concern for manufacturers.

The Association has constantly maintained that the utility cost component of production, particularly electricity, remains one of the highest within sub-Saharan Africa and therefore, needs to change if local manufacturers are to be competitive within the Africa Continental Free Trade Area.

“There are negotiations going on as to what industry should pay in order to keep our utilities surviving; but at the same time, reduce the electricity cost so we can become competitive,” he added.

Launch of awards

This year’s awards, to be held in November, are organized by AGI in collaboration with the Ghana Standard Authority on the theme ‘Leveraging public private collaboration to accelerate business recovery’.

Commenting on the awards, Mr. Akwaboah said it helps in motivating entities to contribute to job creation and socio-economic development.

“Companies that risk their investments and manage their business well are examples to emulate. And the only way is to showcase them to the business community,” he said.

He added that the awards category, this time around, will place special focus on honouring young entrepreneurs who have succeeded in their businesses in order to motivate the youth.

Deputy Minister for Trade and Industry, Michael Baafi, speaking at the event said the country – as part of efforts to ensure strict quality management standards amongst businesses and industry – has in place a National Quality Policy to help create a global brand that epitomises quality in domestic products and services.

“I want to state that the National Quality Policy that will streamline activities of national infrastructure, institutions in Ghana was approved by Cabinet last month,” he said.