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24.01.2011 Business & Finance

GHACEM petitions government over unfair cement deals

By myjoyonline
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Ghana is said to have lost about 5 million Ghana cedis in revenue in 2010, as a result of unfair practices by some cement manufacturing companies who bring in bagged cement from neighboring countries.

Under Ghana's tax system, cement producers are expected to be taxed at the manufacturing stage.

But according to the leading cement manufacturer, GHACEM, some companies believed to be operating in Nigeria bring in already finished products, evading taxes and indulging in unfair competition with local cement manufacturers.

Managing Director of GHACEM, Morten Gade tells Luv Fm 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, which is totally against custom duties and regulations, then it is not a fair balanced competition”, Mr. Gade told Luv Fm at a customer appreciation event in Kumasi.

Commercial Director of Ghacem, Atle Stenboch disclosed that the company in 2010 produced over 3,800 tons of cement for the Ghanaian market.

He said the company is currently undertaking an expansion drive to meet growing demand for its product.

Fifty-three distributors, including 11 estate developers from across the country were rewarded by GHACEM.

Story by Elton Brobbey/Luv Fm

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