Trade and Industry Minister Haruna Iddrisu says the Ministry is in talks with the Ministry of Finance to set out modalities to incentivise manufacturing companies — in the form of tax rebates — that rely heavily on locally-acquired raw materials.
Mr. Iddrisu said the government in the 2014 Budget statement announced a similar move for printing companies and will consult the Finance Ministry as it bids to expand the initiative.
The Minister said this while on a visit to beverage company Kasapreko to gain first-hand observation of the company?s operations and its recent expansion project.
According to Mr. Iddrisu, indigenous companies like Kasapreko are performing creditably and as such require governmental support.
?Kasapreko and its Managing Director Dr. Kwabena Adjei epitomise Ghanaian industrial and entrepreneurial success, and therefore require support from government. For us to give support to industrialists, regardless of partisan coloration, what is important for the economy is whether it is a viable undertaking or whether it is contributing tax revenue to the state or providing employment or livelihood?,? Mr. Iddirsu said.
He added that government is determined to create a congenial environment for local businesses to thrive.
Mr. Iddrisu was received by the company?s Chairman and Managing Director, Dr. KwabenaAdjei, who took him on the tour which also included a US$30million plant expansion project.
The expansion project has seen the installation of custom-made Krone lines from Germany, with the glass line bottling 30,000 bottles per hour while the installed PET lines has a capacity of 40,000 bottles per hour.
Dr. Adjei also implored the Minister to ensure that tax waivers on raw materials are enforced by cCstoms at the various points of entry. His remarks, he said, come after Customs officials on many occasions refused to enforce the tax waivers on raw materials.
According to the Managing Director, Kasapreko has since its inception focused on products derived from Africa?s rich heritage or herbs, by using modern research and development methods to transform traditional recipes into desirable consumer brands.
Kasapreko is ranked in the Ghana Club 100 and is also regarded as one of the top-5 emerging global brands by CNN Money.
The company, founded 25 years ago, currently has 12 brands with Alomo Bitters being the most popular. The product has helped the company penetrate the Nigerian market, driving the company?s external growth.