The Ghanaian textile industry is facing significant challenges due to the lack of implementation of the tax stamp policy, which was introduced to combat counterfeit products.
Despite initial optimism, the policy has yet to be enforced, leading to a decline in the industry’s fortunes.
Kwaku Appiah Kubi, Manager of VOA Enterprise, speaking to Citi News highlighted the challenges associated with these inferior products.
According to him, the absence of tax enforcement has allowed inferior products to flood the market, making it difficult for local businesses to compete.
“Some of the inferior goods which ended up in the market usually, before we had tax force going around, but now there’s no tax force. So these women are compelled to bring these goods into the market without restrictions so if the government can also look at that part for us because it has made business difficult for us.
“Because the foreign ones are cheap but not of good quality but now in our market, people are looking for affordability before maybe quality comes in. So it makes business very difficult.”
Geoffery Ocansey, a Tax Analyst and Executive Director of Revenue Mobilisation Africa, emphasised the need for a standing task force to monitor the system and ensure the quality of tax stamps.
He also suggested investigations be conducted in markets to ensure the system is being operated.
“We have to get a standing task force. You shouldn’t do a nine-day wonder, we should have a standing task force that will be there to check that system where you have a stamp on them. The quality of the stamp is also important.
“Train the persons, let them be aware of quality one from the office and have the machine to stand. You need to be in the market consistently. You know the sales point of these materials are known, you can also do investigative works.”
Austin Gamey, a Labour Analyst and former Minister of Employment and Social Welfare, pointed out that the majority of counterfeit products enter Ghana through its ports, and questioned the effectiveness of customs and immigration officials in policing these entry points.
He highlighted the importance of monitoring the country’s borders and ports to prevent the smuggling of counterfeit products.