House adopts report on tax exemption on imports for state projects

Accra, Dec. 17, GNA- Parliament on Wednesday adopted the Finance Committee report on the Request by the Minister of Finance and Economic Planning for the approval of taxes and duties exemption totalling 971,789 US dollars on the importation of equipment, services and materials for the electrification of Nyinahin and its surrounding areas in the Atwima District of the Ashanti Region.

Mr. Benjamin Kuffuor, Deputy Chairman of the Finance Committee who moved the motion for the adoption of the report said the approval of the tax exemption was necessary to enable the project completed.

He however called on the government to endeavour to release its share of the contribution towards the implementation of the scheme ahead of the overseas funding to minimize delays in the commencement of the project.

Mr. Akwasi Dante-Afriyie, NPP-Atwima-Mponua, noted that Nyinahin has the greatest Bauxite deposit in the country, saying that the electrification project, when completed on time will boost bauxite mining in the area.

He said the tax exemption was necessary to minimize the delays in commencing the project, which was originally scheduled for completion this month to enable Nyinahin to be hooked on to the National Grid.

Mr. John Dramani Mahama, NDC-Bole Bamboye noted that the Rural Electrification Program (REP), which begun in 1989 was suspended as a result of the suspension of donor support since the country went HIPC. "There is no doubt that the REP has improved rural living standards tremendously and was bridging the urban rural gap gradually until we went HIPC and donor funded was suspended," he said.

"At the moment several communities are waiting for the project to begin again and I urge the government to source funding to resume the project."

Mr. Johnson Asiedu-Nketia, NDC-Wenchi West said the expectations of rural communities have been raised about the REP and it was necessary for the government to speed up the process and deliver the projects quickly.

"We must not play politics with REP because the availability of electricity goes a long way to benefit the entire country and not just members of a particular political party - we must not wait for elections and by-election before we undertake electrification projects", he said. Dr. Yaw Brempong-Yeboah, NPP-Atiwa said ahead of the donor funding, government must source domestic funds to start the project to forestall the delays in implementing the project.

He expressed the hope that as the Minister was granted the power to exempt taxes and duties on the importation of equipment and service for the project, government will source local funding to start the initial phase of the project before the foreign support is received.