Beginning next year, local printers would no more be paying import taxes on their raw materials as long as they are used for the production of government text books.

Government has given the assurance to local printers who have been complaining the taxes of up to 40% have unduly made their books more-expensive than the imported ones which are tax-free.

According to them, the taxes makes them uncompetitive compared to their counterparts that imports their finished products from other countries without paying any such taxes.

Deputy Education Minister, Samuel Okudzeto Ablakwa however revealed to JOY-BUSINESS that mechanisms are being instituted to reverse the trend from next year.     

 “What we have discussed at management level at the Ministry of Education is that, we are inclined towards the option where after a company has won a bid to supply textbooks, it would have to indicate to us the quantities it would require, this will then be subjected to independent verification and a waiver will be given to import the raw materials.

“The process would however be policed to ensure the raw materials are used to produce the textbooks which it won the contract to supply. So we’re opting for a more targeted arrangement where we would be able to monitor and police the processes to ensure those quantities are used to print the textbooks. This is also to ensure that whilst trying to provide solution to the identified problem, we don’t create another problem which would lead to abuses and revenue losses” he continued.

Recent research by the Ghana Printers and Paper Converters Association with support from the Business Sector Advocacy Challenge Fund has revealed this has resulted in thousands of workers laid off in the industry so far.

But Mr. Ablakwa, said it is part of government’s decision to implement a100% local content policy on text book printing which requires government purchases at least 60 percent of its educational text-books locally.

He said government is committed to supporting local printers in creating more jobs in the economy regardless of the cost involved.

“We have also indicated that we would want to allow margins even if printing at the initial stages would cost more and actually a list of items have been submitted to the Public Procurement Authority and these are items that we believe can be produced here in Ghana in implementing the local content policy and text books remain on that list”.

“We do not mind spending a bit more, even if it’s slightly more expensive for our local printers to give us the same quantities”.

He said because foreign companies have had several years of experience, they have enjoyed competitive advantage over the local ones.