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Remove VAT, reduce utilities by 50%- Textile workers union tells gov’t

The Textile, Garment and Leather Employees Union (TEGLU) is demanding a 50% reduction in prices of utilities to save the sector from total collapse.

The call comes at a time when the Public Utility and Regulatory Commission (PURC) is holding talks with stakeholders for a possible review of prices of utilities. It is not clear yet if the prices will go upwards or downwards.

While it appreciates attempts by the government to raise revenue, the union in a statement said the sector cannot wait for experiments through the implementation of the tax stamp regime.

Rather, it called on the government to, as a matter of urgency, remove VAT on locally produced textile prints in order to save local textile manufacturing companies from collapse.

TEGLU also wants a joint task force to monitor compliance of all activities of importers and to prevent the influx of cheap textiles into the country.

According to the statement signed by the General Secretary of TEGLU Abraham Koomson,  local textile manufacturing companies have already sent home about 90 percent of their workers due to the influx of pirated wax prints, high taxes and statutory levies as well as high cost of raw materials and utilities.

Mr Koomson said the remaining textile workers will soon hit the streets if the government does not review the operations of the task force.

“The resuscitation of the textile industry will be dependent on effective policy by government devoid of experimental measures at this stage of decline of the manufacturing sector,” he said.



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