MEMBERS of the Ghana Printers and Paper Converters Association have impressed upon the Ghanaian government to remove the import-taxes imposed on their raw materials.
They argued that the high taxes of between 28 and 40 percent continued to have unduly effect on locally-produced books these make them more expensive than the imported ones which are tax-free.
They added that the taxes only increase their cost of production which they have no option but to pass it on to consumers.
The association is therefore worried this could ultimately collapse the local printing industry which is providing jobs for many. This is the major conclusion of the latest research carried out by the association with support from the Business Sector Advocacy Challenge Fund.
The Research Consultant, Gabriel Kofi Ayiglo said:“We sampled about 165 of the printing firms mainly in Kumasi and Accra where we asked them key questions about the factors affecting their operations and they cited about seven of them.
We then went further prioritize the problems and the pre-production tariffs came tops with about 62% of them citing this as their major challenge. From the analysis we did, about 2650 jobs had been lost between 20008 and 2013 for the 165 firms we sampled and if we are to extrapolate that to cover those that do not belong to the association, then it can even be a much bigger figure” he noted.
The President, James Appiah Berko added:“The government and the entire country stand to gain because revenues are rather being lost retaining these taxes and tariffs. If they are removed, books would be cheaper, jobs would be created and profits margins would rise in the industry.
The capital flight on books would also be reversed whilst the cedi depreciation would also be taken care of because if the print industry alone can retain over a $100million per annum – ultimately the industry and the country as whole stands to gain” he explained.
African Eye News
