Cedi depreciation, high import duty cause of cement hike – Manufacturers

Cement manufacturers in the country have attributed the recent increase in cement prices to the depreciation of the cedi to the dollar, high port taxes and duties amongs others.

Major cement manufacturers in the country have announced a 5% increment which takes effect today, warning that prices could increase further if the situation remained the same.

Explaining the rationales behind the increment to Francis Abban on the Morning Starr Wednesday, Executive Director of the cement and steel manufacturers association, Dr George Amoah said the depreciation of the cedi against the major currency, high electricity tariffs, port taxes and dues and others were the major cause.

He said “we have some lingering production cost which bilaterally been seeing the government for the removal. We talking about the review of the VAT from 12.5 to 15% whereby even manufacturers can actually claim the 12.5, the 5% becomes a non-refundable tax which is still hanging.

He lamented “When you go to the ports, apart from the high ports dues and taxes, there has been a tax called the fumigation tax, whereby cement manufacturers importing various raw materials into the country are subjected to fumigation tax of half a dollar per tonne which translates to about 3 million plus dollars a year.”

“This is something which is really hanging on apart from the reasons which they give that once every commodity or cargo that is imported into the country must be fumigated. But the question is how do you fumigate stones?” he added.

Source: Ghana/starrfm.com.gh