Parliament grants tax exemptions on two projects

Accra (Greater Accra) 31 March '99

Parliament on Tuesday granted tax and duty exemptions for the execution of the Kumasi Yeji (Gyato Zongo-Yeji Road) and the Sekondi Fishing Harbour projects.

This follows the adoption of two resolutions moved on the projects by Mr

Steve Akorli, Deputy Minister of Roads and Transport and unanimously approved

in accordance with Article 174 (2) of the Constitution.

The Article which confers power on any person or authority to waive or

vary a tax, imposed by that Act, has to exercise that power subject to the prior

approval of Parliament through the adoption of a Resolution.

The request for tax and duty exemptions for the contract agreement on the

Kumasi-Yeji road rehabilitation project was laid in Parliament on Tuesday,

February 16, for the consideration of the Finance Committee.

The Committee recommended approval for the waiver in order to ensure the

speedy execution of the project and to avoid any increase in the cost of the

works.

Consequently, the House approved the exemptions as prescribed in the Loan

Agreement and the Contract Document in respect of materials, equipment and plant

required for the contract.

On the Sekondi Fishing Harbour, Mr Akorli told the house that the project

is being funded with a Japanese Government Grant Aid.

Government, he said, has therefore agreed to exempt it from all forms of

duties and taxes, and that the total amount of tax and duties on equipment,

materials, spare parts, fuel and lubricants is estimated at over 1.864 billion

cedis.

Mr Akorli said the project took off in January last year and indications

are that engineering works would be completed at the end of March this year.

The project which involves the construction of a Landing Wharf, a

Lay-by Wharf and access road, dredging, installation of an ice making plant and

the reclamation of the sea to provide sufficient land for port facilities

including fish handling, is progressing steadily, she said.

The deputy minister said the project is based purely on socio- economic

considerations and is meant to enhance the operation of the fisher folks in the

area, as well as providing job opportunities.

Mr Akorli said on completion, the project will improve to a large extent

fishing activities in the Sekondi Fishing Port and will also create the enabling

environment for the establishment of private fishing processing industries

within the fishing port area.

The House also adopted the report of the Committee on Health on the

Agreement between the Free Hanseatic City of Hamburg, Germany and the Republic

of Ghana for the establishment and operation of the Kumasi centre for

Collaborative Research into Tropical Medicine.

By the agreement, the Ministry of Health and the School of Medical

Sciences of the Kwame Nkrumah University of Science and Technology, Kumasi, and

the Bernhard Nocht Institute for Tropical Medicine will conduct research and

apply scientific results for the benefit of Ghanaians.