Dec 20, 2012 at 9:16am

The Textile, Garment & Leather Employees Union (TGLEU) has stated that government must waive some of the taxes local textiles companies pay to enable them thrive.

According to the Union, it will begin negotiations with government early next year on the matter after submitting a presentation on the issue.

Its latest move follows the closure of two textile manufacturing companies Akosombo Textiles Limited (ATL) and Akotex Synthetics Limited by the Ghana Revenue Authority (GRA) last week for failing to live up to their tax obligations for the past four years.

The two companies resumed operations on Monday.

There have been calls for government to step in and support local textile companies to enable them thrive.

The General Secretary of the Textile, Garment & Leather Employees Union, Abraham Koomson told Citi Business News, thousands of Ghanaian workers will lose their jobs if such companies are shut down.

“Most of the manufactures think it is more profitable to import the products but if they manufacture them here they create more jobs for us, so if government does assist they may be tempted to import and this will not help the economy. I buy the idea that government should intervene and seriously support them either through loans or waiving taxes. So we want to meet government on the issue.”

ATL and Akotex Synthetics Limited together owed Value Added Tax (VAT) and Pay As You Earn (PAYE) tax close to GHC 9 million in taxes, penalties and interest since 2009.

Mr. Koomson told Citi Business News the Union will appeal to government to waive part of the debts some of the textile companies owe.

“The debt that some of them owe we will appeal to government to waive part of it, but government itself has not settled down so we have to hold on this for now so let’s see how it goes,” he said.


By: Vivian Kai Mensah/citifmonline.com/Ghana