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05.11.2007 Business & Finance

GIPC Law Awaits Cabinet Approval

By Daily Guide

THE GHANA INVESTMENT Promotion Centre (GIPC) has forwarded a proposal on the review of its Act (1994 Act 478) to the Ministry of Finance and Economic Planning for scrutiny before handing it to Cabinet for approval.

The review act which is expected to enhance and encourage more foreign direct investments (FDIs) flows into the country is expected to provide adequate incentives for the companies.

According to Robert Ahomka Lindsay, the center is introducing alternative incentives for reinvestments such as capital allowance, tax relief for recruitment and staff advancement of Ghanaians.

In addition, the center has started with the capital goods import with support from the GCNET and will extend it to other sectors.

Mr Ahomka-Lindsay said the center will implement duty exemptions to ensure companies pay appropriate taxes.

“We will encourage Ghanaian owned companies to register with GIPC to enable the centre create a database of Ghanaian companies to know the sectors they operate in and the level of employment,” he added.

Explaining some of the loopholes in the law to the press last Friday, Mr. Ahomka-Lindsay noted that the centre is not comfortable with the section of the law which asks prospective investors to pay an initial equity contribution of $300,000; thus it has proposed a $1million figure.

On the vision of GIPC, he said it aims to make Ghana the most attractive and secured investment destination in Africa.

Meanwhile a special 8 member task force drawn from the GIPC, CEPS, Ministry of the Interior, the Ghana Immigration Service and the Police Service has been formed to monitor activities of foreign investment projects in the country.

There have been recent complaints of some Chinese traders venturing into the retail trade, which is a preserve for Ghanaians.

Mr. Ahomka- Lindsay said the task force will make sure such illegal practices by these foreigners are curtailed.

By Emelia Ennin

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