30.2 C
Accra
Saturday, November 27, 2021

Major boost for companies under 1D1F as Parliament approves tax waivers

Parliament has granted tax exemptions totalling Eleven Million, Four Hundred and Forty-One Thousand, Six Hundred and Thirty-Eight United States Dollars and Thirty-Two Cents (USD 11,441,638.32) to B5 Plus Limited under Government’s One District One Factory (1D1F) Initiative.

B5 Plus is a local company operating under the Government’s One District One Factory (1D1F) Policy which is designed to promote industrialization, boost investments and create jobs in the country.

The tax waivers are in the areas of Import Duties, GET Fund Levy, Import NHIL, Import VAT and EXIM Levy on materials, plants, machinery and equipment or parts to be imported under the implementation of the 1D1F programme.

The approval on Wednesday November 3, 2021 followed the Finance of Committee Parliament’s recommendation to the House to approve Government’s request with regard to the tax waivers to the company.

The request was laid in the House on Thursday, 10th June, 2021 by the Honourable Minister responsible for Parliamentary Affairs Hon. Osei Kyei-Mensah-Bonsu on behalf of the Minister for Finance in accordance with Article 174(2) of the Constitution and referred to the Finance Committee for report in pursuant to the Standing Orders of the House.

The Chairman of the Committee Hon. Kwaku Kwarteng presenting its Report indicated that provisions of Article 174 (2) of the Constitution empowers the legislative body to confer power on any person or authority to waive or vary a tax imposed by an Act of Parliament.

He said the exercise of any such power conferred on any person or authority to waive or vary a tax in favour of any person or authority is by the said provisions, made subject to the approval of Parliament by resolution.

The Obuasi West lawmaker indicated that the tax waivers for the 1D1F programmes are aimed at creating jobs for Ghanaians through the setting up of factories and industries which will in turn move the country towards greater industrialization.

He posited the initiative will create massive employment particularly for the youth in the affected communities, thereby improving income levels and standard of living as well as promote exports and increase foreign exchange earnings to support the government’s development agenda.

The Ranking member of the Committee Cassel Hon. Ato Forson seconding the motion said the tax waivers will help change the nature of the economy from one dependent on import and export of raw material to one focused on manufacturing, value addition and export of processed goods.

The MP for Adaklu Hon. Governs Kwame Agbodza in his contribution entreated the House as part of its oversight responsibility to undertake monitoring visits to companies granted tax exemptions to ensure that the tax waivers granted are not misapplied.
In another development, the House by a resolution approved the request to waive various taxes totalling the Ghana Cedi equivalence of Three Hundred and Eleven Thousand, Three Hundred and Eighty Three United States Dollars and Fifty Six Cents (USD 311,383.56) to Cascade Development Company Limited and the Gold Coast Resorts International Limited.

The tax waivers are Import Duty, Import GET Fund Levy, Import NHIL, Import VAT, EXIM Levy and Special Import Levy and are on materials and vehicles to be procured in the redevelopment of the Accra Race Course including a five-star hotel, shopping mall, office and residential buildings.

Source link

Latest news
Related news