Business News of Monday, 9 October 2017
Government has commenced moves to review the law on tax waivers and exemptions.
This was announced when Parliament approved a tax exemption package of 90 million dollars to construct the Early Power project.
The project which is worth 647 million dollars is expected to produce a 400 megawatts power plant.
Speaking in parliament on Friday [October 6, 2017], a Deputy Finance Minister, Kweku Kwarteng hinted that government is undertaking a review of the exemption policy to enable value for money in future contracts.
“Please take note; we were compelled to do this because we met an agreement that has already committed government to do this”, he said in response to tax waivers granted on the Early Power project adding that “We also note concerns raised about the cost benefit of this exemption.”
He disclosed that government has therefore partnered with some international partners to review the impact of exemptions in the economy.
“It is correct that many of us in the past have had reservations about some the exemptions in the economy and it is the reason , we, with the support from DFID are taking steps to do a comprehensive study of the impact of exemptions in the economy”.
Mr. Kwarteng was optimistic such a study gives government ample evidence on the long term effect of exemptions to multinational companies in the country.