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Parliament approves US$10.24 million tax waivers on Assin Fosu road project

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Parliament approves US$10.24 million tax waivers on Assin Fosu road project

Awake News by Awake News
December 22, 2020
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Parliament approves US$10.24 million tax waivers on Assin Fosu road project
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Parliament has approved a request for waiver of taxes and duties totaling US$10.24 million on materials, equipment and services to be procured for the rehabilitation of the National Trunk Road N8 (phase2).

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The duties and tax waivers comprise Import Duty, NHIL/GETfund Levy, Import VAT, EXIM Levy, Special Import Levy, ECOWAS Levy, AU Levy, Withholding Tax and Inspection Fees amounting to US$ 8.12 million and Domestic VAT of US$2.11 million making a grand total of US$10.24 million.

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The National Trunk Road N8 Phase 2, currently being implemented by the Government of Ghana covers the rehabilitation of the Assin Praso – Assin Fosu section of the Yamoransa Junction- Asante Bekwai Road Project.

The project is to be undertaken by Messrs Shimizu-Dai Nippon Joint Venture of Japan.

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The facility is under the Japanese Grant Agreement between the Government of Ghana and Japan International Cooperation in respect of the rehabilitation of the National Trunk Road N8 (phase2).

The rationale for the waiver is to put the burden of the payment of taxes, duties and levies on the project related items on the government.

The National Trunk Road N8 facilitates the transportation of goods and for both local consumption and export. The road has deteriorated due to the large volumes of vehicular traffic using it.

In order to ensure smooth and safe vehicular traffic movement on the N8, the government is reconstructing the road with a Japanese Grant facility. Phase one which covers 60km stretch from Assin Praso to Asante Bekwai (Phase 1) is complete.

The Government of Ghana is currently implementing phase 2 of the project which covers the rehabilitation of the Assin Praso – Assin Fosu section of the road.

In order to ensure the smooth implementation and timely completion of the project, there is the need to waive the taxes and duties applicable to the project.

When completed, the project would help improve traffic movement along the National Trunk Road N8 in the Central Region as well as enhance economic activities within the project area.

Other benefits to be derived from the project include increase in trade between Ghana and neighbouring countries, improvement in the transportation of major export commodities such as gold, bauxite, timber, cocoa and manganese to the Takoradi Harbour as well as increase people’s standard of living, especially those in the rural areas.

Source: GNA

Tags: Parliament
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