Management of Dangote Cement Company (Ghana) Limited wants the government to review its tax policy on import duty to enable them pay the same percentage other industry players are paying.
According to the company, a reduced tax rate will enable them to also reduce the price of their product where consumers will have no course to complain about affordability.
The Nigerian firm which is expanding its frontiers to markets in the West African sub-region was previously paying 5% tax on import duty just like their competitors but a change in policy after protests from the existing local companies has shot the tax component to 10%.
The policy directive had to do with the fact that Dangote’s competitors were adding value to the limestone they import into the country.
But the Sales and Marketing Manager of the company, Joseph Abo says Dangote Portland Cement would have been far cheaper on the market than what the product is currently being sold for it they were allowed to pay 5% tax on import duty just like their competitors.
“This is something we have been struggling about. We used to pay 5% but we are now paying 10% because of a change in policy. This is part of the cost of our production. We wanted to sell at a minimum cost because we know the income level of our nation. So, the tax has pushed us to a higher level”, he noted.
He added “Sometimes, it also restricts you to do the best that you can do so far as pricing is concerned. We could have done better in pricing if we are giving better tax policy as others are doing”.
Despite the tax hike, Mr. Abo said the Dangote Portland Cement is still selling at the same prices as their competitors who are paying 5% tax on import duty are doing.
“If government considers its tax policy for us to go back and pay the old 5% tax as everybody is paying, that will be very helpful to us”, he added.
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