Cement manufacturers in pain over impact of high taxes on their operations

Cement Manufacturers in the country want government to reduce the number of taxes and levies imposed on their operations.

According to the Cement Manufacturers Association of Ghana, the increasing number of taxes and levies imposed on them is putting a pressure on their members.

Among the numerous taxes and levies is the recently added fumigation levy of 0.5 dollars.

The association also pays the VAT restructuring levy of 5% and the 2% special tax.

The Association says these taxes and levies coupled with increased electricity tariffs have made them uncompetitive and their operations expensive.

Executive Secretary of the association, Reverend Dr. Dawson- Amoah, told Citi Business News steps must be taken to reduce the number of taxes affecting them

“The various levies and taxes that have engulfed the cement industry make production very expensive and for that matter rendering the local cement manufactures uncompetitive if you compare it with the importation of cement into the country. Like I rightly said, the latest of this levy is this Ministry of Health levy which we call fumigation levy at the ports.” He said.

Currently, there are nine individual cement manufacturing factories with one bagging plant that has a total installed capacity of about 11.6 million tonnes per annum.

The average consumption is about 6.3 million tonnes per annum, creating a surplus of about 5.3 million per annum.

Reverend Dr. Dawson- Amoah said they may be forced to lay off workers if the issue is not addressed by government.

“There are a lot of taxes, lots of levies which is really affecting the industry. This is the same cry of most industries. The much trumpeted industrialization, the much trumpeted like trying to salvage the industry, trying to protect the industry is not what we have seen, it is not what we are seeing. Even I have it right in front of me. Talking about the release of PURC on increase in tariff like I said is a bombshell.” He added.

The current members of the Chamber of Cement manufacturers are CIMAF Ghana Limited, Diamond Cement Group, CBI Ghana Limited and Ghacem Limited.

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Source: Citibusinessnews

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