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Business News of Thursday, 5 February 2004

Source: GNA

BUDGET: Import duties on aluminium ingots halved

taxes on musical instruments to go
Accra, Feb. 5, GNA- The Government has proposed the reduction of import duties and removal of VAT on selected imported goods. These include the reduction of the 10 per cent import duty on Aluminium ingots to five per cent; the freezing of the payment on VAT on imported industrial raw materials; the removal of import duties on lumber and removal of VAT on irrigation pumps.
Mr Yaw Osafo-Maafo, who announced this when he presented the Government's Budget Statement to Parliament on Thursday proposed the removal of taxes on musical instruments and the removal of duty and VAT on imported inputs for fishing nets and fishing Ropes.
The Minister said the relief on industrial raw materials was in line with the to Government's vision of "Golden Age of Business".
"It is envisaged that this would mitigate the upfront cash flow problems faced by manufacturers associated with the VAT component of large imports of industrial raw materials," he explained.
He, however, noted that since some raw materials also double as finished products, the list of imported industrial raw materials qualified to be zero-rated under the Import VAT regime and the companies eligible for this special tax treatment shall be gazetted quarterly. The Finance Ministry and the Ministry of Trade, Industry and President's Special Initiatives (PSI) would ensure transparency and curtail abuses.
He said the removal of taxes on musical instruments would drive the development of local musicians and the music industry towards the promotion of our culture and tourism as well as social life. The holiday would cover musical instruments classified under Chapter 92 of the Harmonised Code and recording instruments, he said.