Home Business ‘Cement companies are suffering’ – COCMAG

‘Cement companies are suffering’ – COCMAG


Rev. Dr. George Dawson-Ahmoah

The Chamber of Cement producers, Ghana (COCMAG) has reported the introduction of numerous taxes and levies around the past two decades could quickly collapse the cement market.

COCMAG is, thus, calling on Federal government to urgently intervene.

At a crunch board conference held by the chamber on June 27, 2019, members mentioned several problems confronting the cement market.

According to the Executive Secretary, Rev. Dr George Dawson-Ahmoah, the most new tax slapped on cement manufactures is the fumigation levy of $.50 for each tonne of imported clinker by the Ministry of Health.

Rev. Dr. Dawson-Ahmoah described the problem as stunning, stressing that “how on earth can a raw product these types of as clinker be fumigated ahead of clearance from the port, we are calling for the quick abolishing of this levy.”

He provides: “My members are not delighted at all due to the fact in addition to this levy there is still the VAT restructuring levy of 5% and the 2% specific tax which has been in existence for the previous 3 a long time. There are several other people like a proposed boost in certification license /surveillance from Ghana Benchmarks Authority etc. All these have an affect on creation expenses in the generation of cement culminating in uncompetitiveness.”

Rev. Dr Dawson-Ahmoah further more lamented on a current reduction of benchmark benefit by His Excellency, the Vice President for all imports into the state.

The Customs Division of the Ghana revenue authority (GRA) meanwhile, restricts these directive to cover the importation of uncooked product from only China and Turkey.

“There has been persistent appeals to the Customs Division of the Ghana Profits Authority (GRA) that cement raw products are imported from all more than the world but these appeals have not been addressed. In the meantime, the reduction in benchmark values are strictly adhered to on finished imported cement products and solutions (Bagged and Bulk) which are competing with the nearby cement suppliers which is a apparent scenario of unfair trade practice” he pointed out.

An additional problem elevated by associates he disclosed was the growing cement factories in Ghana. “Already the present companies have a merged utilization level of about 45%, an indicator that there is a overall suitable cement ability in Ghana.

Until date, there are nine individual cement production factories additionally one particular bagging plant that has a full set up potential of about 11.6 million tons for every annum. The normal use is about 6.3 million tons per annum bringing a surplus of about 5.3 million for each annum. “So why do we need extra cement factories, “asked Dr Dawson-Ahmoah.

Commenting on the latest Push release by the General public Utilities and Regulatory Commission (PURC) on the proposed enhance of energy tariff which requires outcome on 1stJuly, 2019, Rev Dr Dawson-Ahmoah claimed “This is a bombshell, the stated raise of 11% as introduced is somewhat about 46% evaluating with the previous tariff’’ he bemoaned.

He, consequently, cautioned that these growth if not resolved may well power businesses to downsize as this kind of Authorities should really step in to defend and empower the current producers to promote the sector.

He was having said that whole of gratitude to the Honorable Minister of Trade and Marketplace for his assist and trusts that these issues would be addressed with his interventions.

The recent members of the Chamber of Cement producers are CIMAF Ghana Constrained, Diamond Cement Group, CBI Ghana Confined and Ghacem Confined. Wan Heng Ghana Confined and Xin Ann Risk-free Cement Confined, all Chinese companies are but to regularize their membership.

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