Parliament approves $10.24m tax waivers on Assin Fosu road project

• Posted on December 24, 2020December 24, 2020
• by Nana Kwesi Coomson
• Comment

Parliament has approved a request for waiver of taxes and duties totalling $10.24 million on materials, equipment and services to be procured for the rehabilitation of the National Trunk Road N8 (phase two).

The duties and tax waivers comprise Import Duty, National Health Insurance Fund Levy (NHIL)/ Ghana Education Trust Levy (Levy), Import Value Added Tax (VAT), EXIM Levy, Special Import Levy, Economic Community of West African States (ECOWAS) Levy, African Union (AU) Levy, Withholding Tax and Inspection Fees, amounting to $8.12 million.
It also includes Domestic VAT of $2.11 million, making a grand total of $10.24 million.
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.
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 (phase two).
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.
In order to ensure smooth and safe vehicular traffic on the N8, the government is reconstructing the road with a Japanese grant facility. Phase one, which covers a 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 an 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.