Mr Ken Ofori-Atta speaking about industry support during his budget reading has said the 2019 VAT relief provided on African prints for textile manufacturers to enable them to revive their operations and provide affordable textiles to the market was a success.
He admitted that this policy has succeeded in stabilizing the industry and formed the basis for a modest increase in production.
Due to stability in textile companies, prices of textiles have been maintained over the period making the cost of local prints affordable to which companies have been able to keep their employees and made some investments in the industry without laying off workers.
“Government is correcting the VAT Flat Rate of three per cent of the sale price of goods introduced in 2017 on the supply of goods by wholesalers and retailers by limiting 16 the Flat Rate to only retailers. All other supply of goods and services will attract the Standard rate,” says Ken Ofori-Atta.
To ensure that this objective is achieved the finance minister said, the rate will be applied to retailers with annual turnover not exceeding GH¢500,000.
Source: Mybrytfmonline/Dorcas Korkor Larbi
