Parliament has approved €14.7 million in tax relief for materials and equipment to be imported for the reconstruction of two road projects in the Western and Bono regions.
These roads are the Bechem-Techmantia-Akumandan road (40.4 km) and the Tarkwa-Agona Nkwanta road (66 km) by Messrs. Gabriel Cuoto-Rango Consortium.
The tax reliefs consist of import duties, import National Health Insurance Levy (NHIL), import value added tax (VAT), EXIM tax, special import levy and COVID-19 health recovery tax.
Parliament to be recalled on 29 July and 30 July 2020 respectively approved the loan facility agreement between the Government of Ghana (GoG) and Deutsche Bank, AG for the amount of €147.5 for the reconstruction of Bechem-Techmantia-Akumandan (40.4 km) and the Tarkwa-Agona Nkwanta road projects (66 km).
The design-build contract between the GoG and the consortium of Messrs Gabriel Cuoto-Rango includes €50 million for the implementation of the reconstruction of the Bechem-Techmantia-Akumandan road (40.4 km) and €95 million for Tarkwa-Agona Nkwanta (66 km). ) project.
Mr Kwaku Kwarteng, Chairman of the Finance Committee, who represented the committee report, said the completion of the two projects will go a long way in improving travel time and bring relief to commuters and communities in the project areas.
He said the project will also facilitate the movement of agricultural produce from production centers to market centers.
Dr. Cassiel Ato Forson, a member of the finance committee who supported the proposal, said that although the tax exemption bill had been passed by parliament and when passed, it would limit the number of tax breaks that can be given to companies.
However, he argued that there are currently some treaties that the Government of Ghana must respect and grant tax exemptions.
"The committee believes that we should grant more of some of these deals to get them out of the way so that the ones that come after the tax exemption law have to strictly follow the new rules," he added.
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