Ghana is said to be losing substantial sums of customs revenues due to the practice of allowing imported bagged cement from neighbouring Nigeria, at unfair low taxes, claims senior executives from Ghacem the country’s leading cement producer.
Ghacem notes that some companies believed to be operating in Nigeria bring in finished cement evading taxes and indulging in unfair competition with local cement manufacturers who are taxed at the manufacturing stage of production.
Managing Director of Ghacem, Morten Gade told local reporters that his company has petitioned Parliament and the Ministry of Trade and Industry to look into the issue to save the country from further revenue loss.
“When someone is importing a finished product, which only requires bagging at the same import duty as someone importing raw material, then it is not a fair balanced competition”, Morten Gade said.
Commercial Director of Ghacem, Atle Stenboch also disclosed that the company in 2010 produced over 3.8Mt of cement for the Ghanaian market. He said the company is currently undertaking an expansion drive to meet growing demand for its products.