By Kofi Ahovi
The Venture Capital Trust Fund (NSL) is seeking to secure funding from the newly established National Stability Levy (NSL) in order to meet the growing demand from qualified companies.
The search for a new source of funding became necessary when the National Reconstruction Levy, which provided 25% of its proceeds to VCTF amounting to GH¢22.4 million, was abolished 2006.
The NSL is a special levy imposed on the profits of specified companies and institutions in order to raise revenue for fiscal stabilisation of the economy and to provide for related purposes.
The new tax which comprise of an additional 5% profit tax is applicable to corporate organisations in the communications, mining, brewery and financial services sectors.
Already, government is highly optimistic that the newly established levy which is to take off this quarter will yield an amount of GH¢11 million for the remainder of the year and GH¢22 million or more in 2010.
The proposal for the introduction of the levy was first contained in the report of the finance committee of Parliament on the Poverty Reduction and Growth Facility (PRGF) credit agreement between government and IMF for an amount of US$597 which was approved last week as balance of payments support.
The Finance Committee report supporting the bill observed that the 2009 budget has a fiscal gap for which revenue needs to be raised to fill. The committee was informed that the levy is a form of a national call to the companies and institutions involved as part of their extra corporate responsibility.
VCTF is to create an avenue for SMEs to access funds needed to grow, create jobs and subsequently generate wealth and eliminate poverty. Venture capital or private equity is an opportunity whereby a financier unrelated to the owner provides money to start or grow existing businesses for a period of time, usually medium to long term. A venture capital investment is usually made in exchange of ownership share rights in the business.
As at 2008, VCTF has invested a total of GH¢9 million in 20 companies. These investments were done in partnership with Activity Venture Capital Finance Company, Bedrock Venture Capital Finance Company, Gold Venture Capital Limited and Fidelity Equity Fund 11 Ltd.
The Fund was established by an Act of Parliament (Act 680) in 2004 with the primary responsibility of providing long-term funding to support the development of SME’s.
The Venture Capital Trust Fund (NSL) is seeking to secure funding from the newly established National Stability Levy (NSL) in order to meet the growing demand from qualified companies.
The search for a new source of funding became necessary when the National Reconstruction Levy, which provided 25% of its proceeds to VCTF amounting to GH¢22.4 million, was abolished 2006.
The NSL is a special levy imposed on the profits of specified companies and institutions in order to raise revenue for fiscal stabilisation of the economy and to provide for related purposes.
The new tax which comprise of an additional 5% profit tax is applicable to corporate organisations in the communications, mining, brewery and financial services sectors.
Already, government is highly optimistic that the newly established levy which is to take off this quarter will yield an amount of GH¢11 million for the remainder of the year and GH¢22 million or more in 2010.
The proposal for the introduction of the levy was first contained in the report of the finance committee of Parliament on the Poverty Reduction and Growth Facility (PRGF) credit agreement between government and IMF for an amount of US$597 which was approved last week as balance of payments support.
The Finance Committee report supporting the bill observed that the 2009 budget has a fiscal gap for which revenue needs to be raised to fill. The committee was informed that the levy is a form of a national call to the companies and institutions involved as part of their extra corporate responsibility.
VCTF is to create an avenue for SMEs to access funds needed to grow, create jobs and subsequently generate wealth and eliminate poverty. Venture capital or private equity is an opportunity whereby a financier unrelated to the owner provides money to start or grow existing businesses for a period of time, usually medium to long term. A venture capital investment is usually made in exchange of ownership share rights in the business.
As at 2008, VCTF has invested a total of GH¢9 million in 20 companies. These investments were done in partnership with Activity Venture Capital Finance Company, Bedrock Venture Capital Finance Company, Gold Venture Capital Limited and Fidelity Equity Fund 11 Ltd.
The Fund was established by an Act of Parliament (Act 680) in 2004 with the primary responsibility of providing long-term funding to support the development of SME’s.
Comments