July 16, 2013

The Minority New Patriotic Party (NPP) in parliament has alleged that certain international corporations could be forced to pull out of Ghana, if government imposes new taxes on imported mobile phones.

Addressing the media in Accra on Tuesday, Minority leader in Parliament, Hon. Osei Kyei Mensah Bonsu said certain companies may be forced to halt moves of setting up plants in Ghana if government goes ahead with the move.

“We are losing our competitiveness in the sub-region. Just two weeks ago when government came out with this tax on [mobile] handsets, we are told [a mobile phone manufacturer] wanted to locate in Ghana in the sub-region and use Ghana as a hub”

“But immediately they sent their agents to come to me for the bill and now there is inertia on their path; as a country we are losing our competitiveness and if we are not careful we will cascade further downwards.”

It is believed that Samsung has announced it intends to build an assembling plant in the country in a few years but according to the minority in parliament moves by government to introduce taxes on imported phones may push out companies like Samsung which will be one of many that will be severely affected when the law is passed.

Government however says the move is to protect the local industry and also make up for revenue shortfalls experienced in the first quarter of this year.