By Jeorge Wilson KINGSON
Parliament has waived a total of GH¢5.15mil taxes on equipment and materials imported or purchased locally for implementation of the country’s fibre-optic telecommunication backbone project.
The request for the waiver was put in by the Ministry of Finance and it was to enable the communication ministry honour its part of the agreement which established the project which was constructed by Huawai Technologies Company Limited.
The waiver comprises a corporate duty of GH¢3,462,687, corporate tax of GH¢1,007.768 and GH¢678,762.48 Value Added Tax (VAT). Sections of the agreement state that “the contract price is exclusive of local tariff, VAT, taxes, duties, withholdings, levies, charges or fees that may be applicable in the country all authorities for the performance of the contract. In case there is a local requirement on the contractor for such payment, or any retention and/or withholding being made on the payment to the contractor, the prices quoted shall be adjusted accordingly.”
Based on this, the finance committee of Parliament in its report on the request for the tax-waiver observed that if the listed exemptions were not granted and the contractor was made to pay the taxes, he would have to adjust the prices quoted accordingly. “In order to prevent the contractor from adjusting the prices, there was the need to waive the project of the tax@ the report stated.
The Minister of State at the Ministry of Finance and Economic Planning, Dr. Anthony Akoto Osei informed the committee that due to the exigency of phase one of the project, temporary tax waivers were granted by his ministry for clearance of the equipment approval of the House.
Parliament has waived a total of GH¢5.15mil taxes on equipment and materials imported or purchased locally for implementation of the country’s fibre-optic telecommunication backbone project.
The request for the waiver was put in by the Ministry of Finance and it was to enable the communication ministry honour its part of the agreement which established the project which was constructed by Huawai Technologies Company Limited.
The waiver comprises a corporate duty of GH¢3,462,687, corporate tax of GH¢1,007.768 and GH¢678,762.48 Value Added Tax (VAT). Sections of the agreement state that “the contract price is exclusive of local tariff, VAT, taxes, duties, withholdings, levies, charges or fees that may be applicable in the country all authorities for the performance of the contract. In case there is a local requirement on the contractor for such payment, or any retention and/or withholding being made on the payment to the contractor, the prices quoted shall be adjusted accordingly.”
Based on this, the finance committee of Parliament in its report on the request for the tax-waiver observed that if the listed exemptions were not granted and the contractor was made to pay the taxes, he would have to adjust the prices quoted accordingly. “In order to prevent the contractor from adjusting the prices, there was the need to waive the project of the tax@ the report stated.
The Minister of State at the Ministry of Finance and Economic Planning, Dr. Anthony Akoto Osei informed the committee that due to the exigency of phase one of the project, temporary tax waivers were granted by his ministry for clearance of the equipment approval of the House.
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