Wax Print importers take stand against high rise in import duties & taxes

29 Jun '05

2 min read

Importers of Chinese wax prints in Ghana made a stand against the government for the sky-high rise in import duties and other taxes on the goods.

On the other hand the government has says that the rise in tariffs and others taxes is part of steps to save the domestic textile industry.

For example, the Free On Board (FOB) of a quantity of 198 bales of Chinese imitation wax print imported on 23 May, 2005 was $62,964, for the same quantity on June 9, 2005 was $365,528.

The Cost Insurance Freight (CIF) for the same quantity in May was $65,532.43 as against $368,726.37 when the import duty went up from $13,106.49 to $73,745.27.

With regard to Value Added Tax (VAT) and National Health Insurance Levy (NHIL), the figures rose from $9,829.86 and $1,965.97 to $55,308.96 and $11,061.79.

Mrs Regina Acolatse of Gelina Enterprise informed that the rise had put some of the traders in difficult situation, to take delivery of containers due to the lack of funds to clear the items.

She said importers from China were unable to understand why the government was directing the annoyance of local textile owners at those who paid their taxes on regular basis.

The Ministry of Trade and Industry official explained that the action is taken to avoid the dumping of imported wax in the domestic market and pointed out that the steps was part of the World Trade Organisation (WTO) and EU safeguard measures to protect domestic industries.

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