Our front page lead story in last Friday’s November 12 issue centred on the misapplication of duties under a harmonised Code that is crippling local aluminuim companies, and how some importers of aluminum products are evading taxes, which is quite appalling. This state of affairs has prompted the intervention of the Metal Building and Construction sector of the Association of Ghana Industries (AGI), to ask government to reconsider the tariff structure of all imported aluminum products into the country. There appears to be a looming price-war between large-scale aluminum manufacturing companies and small-scale aluminum traders as a result of the five percent concessionary duty enjoyed by industry players under the harmonised code 98.08, which many importers of finished aluminum products do not qualify for but are capitalising on, and not paying the right duties to the state. Traders importing all other finished aluminum products including roofing sheets attract 20 percent duty. AGI’s beef is that importers are bringing into the country all manner of finished aluminum goods not for the manufacture of corrugated sheets, yet are granted the concessionary rate of five percent in contravention of the harmonised code 98.08. They then sell the products far below the market price and are thereby stifling legitimate competitors. This unfair and unhealthy competition affects the large-scale aluminum manufacturing companies since they pay huge electricity tariffs, workers’ salaries, VAT and other related overhead expenses. Some traders who bring in sub-standard roofing sheets are able to maneuver their way at the ports by paying less duty, to the detriment of genuine competitors as well as the loss of vital revenue to the state. What is even more worrying is the fact that this activity of small-scale operators has encouraged their Chinese counterparts to flout our laws with impunity. It is the hope of this Paper that the relevant authorities will note this problem and rally to the cause of the local manufacturers who are facing unfair competition from unscrupulous players. Source: BFT