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Business & Finance | Jun 26, 2004

Government to reduce taxes GIPC Official

GNA

Techiman (B/A) June 26 GNA - Mr. Augustine A. Otoo, Principal Investment Promotion Officer of the Ghana Investment Promotion Centre (GIPC) has disclosed that government intends to reduce taxes from 32.5 percent to 30 percent by the year 2005. He added that the incentive on the tax reduction, ranging from three to 10 years, would, however, depend on various sectors and other tax concessions available.

Mr. Otoo was addressing 60 business entrepreneurs on how to set up their centres at a day's seminar on investment promotion at Techiman in Brong Ahafo. He noted that Act 478 of 1994 guaranteed 100 percent transfer of profits, dividends and fees to ensure the growth of affiliate businesses, while the government continued to support their viability.

He said businesses that had been listed on the Ghana Stock Exchange would pay 20 percent tax whilst farmers, who produced non-traditional exports would pay only eight percent and hoteliers, 25 percent.

The Centre organized the seminar in collaboration with the German Development Corporation (GTZ), Promotion of Private Sector (PPS), GTZ-Rural Trade Industry Promotion (RUTIPP) and the Techiman Municipal Assembly.

Mr. Otoo indicated that institutions that offered loans to farmers would be taxed 10 percent with high purchase enjoying 10 percent tax reduction, while real estate developers would pay taxes after five years of operations.

Companies that re-cycle waste materials will be entitled to pay taxes after seven years of operations, he added. On the agriculture sector, Mr. Otoo noted that coffee, coconut, rubber and cattle farmers would enjoy tax exemption after five to 10 years of operations with cocoa enjoying total free taxation. He said farmers who would import heavy agricultural machinery would be exempted from paying taxes, whilst industrialists willing to go beyond Accra and Tema to set up their businesses would pay 25 percent tax with the three northern regions enjoying tax free in operations. The rationale, he said, is to encourage more industrialists to locate their businesses outside Accra and Tema.

Mr. Aryan Kizito of the Ministry of Trade and Industries and President's Special Initiatives (PSI), said the introduction of PSI was not under any political connotation but a humanitarian venture aimed at alleviating poverty. He announced that a cassava factory would soon be established at Kintampo whilst plans were far advanced for a proposed oil palm factories at Duayaw-Nkwanta and Bechem, all in Brong Ahafo. He said the Ministry in collaboration with the Rural Enterprise Project (RTP) was planning to establish three industries in each of the 110 districts.

Mr. Isaac Osei-Antwi, Techiman Municipal Chief Executive, who presided asked entrepreneurs to take advantage of the training offered to open more businesses to ensure growth and the alleviation of poverty.

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