Basic News of Friday, 31 January 2020
The Minority Caucus has sent a take note to the Minister of Finance, Ken Ofori-Atta, demanding that he instantly withdraws a tax waiver request for an amount of US$23,983,033.43) for a personal business entity allegedly owned by a single of President Nana Addo Dankwa Akufo-Addo’s in-guidelines or face their wrath.
In accordance to the National Democratic Congress (NDC) Users of Parliament (MPs), the tax waiver request does not conform to the protocols that demand from customers for government’s intervention in that regard, stressing that the ask for in its form is abuse of electricity and also quantities to nepotism and favouritism by the govt.
In their watch, never ever in the background of the country has such a tax waiver request been manufactured for a wholly Ghanaian non-public organization wherever the government or Point out has no interest in the task that entity will execute or undertake.
On Tuesday, January 28, 2020, the Minister of Finance offered a Paper to Parliament requesting for waiver of Import Obligations, Import VAT, Import NHIL Levy, Import GETFund Levy, Domestic VAT, Domestic NHIL and Domestic GETFund mounting to the Ghana Cedi equal of Twenty 3 Million, Nine Hundred and Eighty-A few Thousand, 30-Three United States Dollars and Forty-3 Cents (US$23,983,033.43) on components, plant, equipment and devices to be procured by Platinum Attributes Limited for the Pullman Accra Airport City Lodge and Serviced Residences.
The tax waiver ask for, in accordance to inside of resources, has by now obtained Cabinet approval.
Having said that, the MP for North Dayi, Hon. Rockson-Nelson Dafeamekpor, who is foremost the crusade on behalf of the Minority Caucus, in interview with journalists on the sidelines of Thursday’s parliamentary sitting, mentioned the transfer by the Minister of Finance, presents undue benefit to Platinum Qualities Restricted in excess of its opponents in the Airport City enclave.
“The fears of the Minority in this make any difference is the quantum of the income associated. It is exceptionally unacceptable that we are staying questioned to waive a tax of just about US$24million which is the equivalent of GH?136,000million in favour of a purely private owned firm with no point out interest in this enterprise. Now, what consequently is the profit of the Republic of Ghana, notably, when the site of the reported lodge which is at the Airport City enclave include other personal attributes which have been manufactured by other citizens and other non-public corporations who didn’t take pleasure in tax waiver? So, previously you are inserting this competitor at an advantage. Now we grant tax waivers – the protocols in respect of tax waivers are normally in regard of bilateral agreements to which we are seeking for amenities and the services are intended to be applied to undertake structural advancement and or for functions of social interventions for which some components or other points would have to be imported and as a outcome of which the negotiations will issue into it that if taxes were not be waived, then the charge of the facility will be considerably higher to the point out. That is how the calculations are finished so that when taxes are waived, the value of the facility in conditions of fascination payables are at an considerable or at an appropriate level for the Republic of Ghana to execute”, he mentioned.
He added “Our checks at the Registrar Section reveal that the company is owned by the brother in-legislation of the President who is married to the 1st Lady’s younger sister and that is revealing due to the fact no other Ghanaian entity has been extended such a facility except if of program, there is intended to be a improvement – a challenge to be undertaken by the Condition in a General public-Private Partnership arrangement where some of the tax waivers a number of Ghanaian businesses who are participating in this PPP arrangement are benefiting”.
He stated per information of the Memo to Parliament, there is no feeling from GRA in terms in respect of the request for the tax waiver. Even further to that there is no justification for the claimed ask for, making them surprise why the federal government would want to initiate these types of a shift.
“There is a letter from the Executive Secretary of the President directed at the GIPC to to start with permit GIPC to grant this firm a Special Reason Motor vehicle standing as a distinctive investment entity in the country. It is on this basis that the Presidency is asking the Finance Minister to seek Parliamentary approval for the waiver of this sum of dollars.
He reported the Minority will do whatsoever in their potential to resist such a request from the Minister of Finance, urging the medial also to get started scrutinizing the action of the government.
“Now we are heading to resist it as a minority since the basis for this ask for is not sound, it doesn’t make community sense – what the authorities is telling the Republic is that we really should forego this dollars. The Republic should not go after US$24million. We should really waive this funds for a private man or woman who is a brother in-regulation to the President and we assume that it raises critical thoughts of cooperate governance in this matter”, he famous.