With an increase in the number of counterfeit and cheap products on the Ghanaian market, Labour Unions and the Association of Ghana Industries (AGI), the biggest mouth-piece of local companies, have called for the separation of the industrial sector from the Ministry of Trade and Industry. A source close to BUSINESS GUIDE said labour and the AGI have held several meetings on the issue, adding that they were preparing to send a formal document to President John Evans Atta Mills to register their support. AGI revealed that the move is a major step that would save most manufacturing firms from collapse and thereby re-ignite the nation’s quest of becoming the industrial hub in West Africa. He added that industry players were tactful with their approach in order not to divert attention from the smuggling activities and evasion of taxes. “All the stakeholders are going to meet to conclude on a final decision,” he told this paper. The separation of the industrial sector from trade, according to stakeholders, was necessary because it would push the current administration to address the problems in the manufacturing sector, which is on the verge of collapse. Another owner of a manufacturing firm, who spoke on condition of anonymity, noted that “the local industry does not look lucrative at all like in the 60’s, 70’s and 80’s when there was fair competition and protection from government. “Various institutions such as Ghana Agro Food Company (GHAFCO), Tema Shipyard, Tema Oil Refinery and the Akosombo Textile Limited (ATL) attest to the fact that all is not well in the industry,” another manufacturer disclosed. Last week, Tony Oteng Gyasi, former President of AGI expressed worry over high taxes such as the 20 percent ad valorem tax imposed on bottled and sachet water and potential increases in tariffs at the Institute of Democratic Governance, a seminar organized by Institute of Monetary Fund (IMF), describing the situation as “a threat to the survival of industries.” “Already, our tax revenue to Gross Domestic Product (GDP) is about 23 percent so how many taxes do government need. Increasing taxes by 50 percent of GDP means that we are killing the economy,” he stressed. Elizabeth Joyce Villars, a former AGI President and Chairperson of Camelot Ghana Limited, expressed worry about high taxes, explaining that “how can the private sector grow and employ more people to support the poverty reduction strategy. Several manufacturing firms, including Bonsa Tyres, Nsawam Cannery, Ghana Textiles Manufacturing Company (GTMC), Tema Food Complex, Abosso Glass Manufacturing and West African Mills, GIHOC firms, Tema Textile Limited, Ghana Consolidated Diamonds and Akasanoma Electronics were established by Dr. Kwame Nkrumah in the country but have since collapsed, with others divested to private investors. Data released by the Ghana Statistical Service (GSS) over the years are not encouraging, as the manufacturing sector has recorded below its target on numerous occasions. For instance, the manufacturing sector recorded 2.30 and 4.53 percent in 2007 and 2008 respectively, but reduced sharply in 2009. Source: Business Guide