Ghana Leather Makers Demand Zero Import Duty on Raw Materials
The Ghana Leather Manufacturers Association is calling for an end to import duties on raw materials for leather production. The group stated this Tuesday, June 2, 2026. President Gilbert Akwasi Ntim explained that current taxes are too high. These duties make it much more expensive for Ghanaian businesses to make leather goods. This pushes up their production costs significantly. It also destroys their ability to compete with imported items.
Mr. Ntim highlighted a major problem in the current tax system. He said it is unfair. Imported finished leather products face lower taxes than the raw materials needed locally. This creates a significant disadvantage for Ghanaian manufacturers. It makes it very hard for them to sell their products. Cheap imported goods flood the market. This makes it nearly impossible for local companies to survive. The association believes a zero percent duty on inputs would drastically lower costs.
This call comes as Ghana aims to boost its industrial sector. The government has pushed for increased local manufacturing. However, the leather industry struggles with its current tax burdens. The association believes this policy change could unlock huge growth. It could also create many jobs. Mr. Ntim stated that lower production costs would allow Ghanaian footwear to compete across Africa. He mentioned potential for supplying schools and the military. This fits Ghana's broader goal of increasing local value addition. It also supports small and medium-sized businesses.
The association has formally appealed to key government bodies. These include the Ghana Revenue Authority (GRA), the Ministry of Trade and Industry, and the Ministry of Finance. They urge a full review of the tax system. They want immediate customs relief for local makers. Mr. Ntim warned that members will not stand by while businesses fail. He vowed further action if the government does not respond. He cited Ghana exporting about $US 40 million to China. Yet, the country imports poverty that hurts local industries. He stated, “if they refuse to hear our pains, they will hear our boots on the streets.”
The Ghana Leather Manufacturers Association insists that these tax reforms are vital. They believe them to be the only way to boost local goods. This would secure jobs. It would safeguard the future of the leather sector. The association is firmly committed to this position. They see this as a crucial step for economic development. The country faces challenges in its balance of trade. This proposal addresses a specific sector's needs within that context.