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By Christopher Arko, RNG
Accra, 18 July. GNA-Parliament approved
request for removal of import duties, VAT on import, GETfund levy, NHIL import, Exim
levies and other taxes amounting to US $ 222,151 on equipment to be purchased by
Yedent Agro Processing Company Limited.
The lifting of taxes on equipment to
to be acquired by the company is consistent with the government's policy in the
implementation of the One District, One Factory (1D1F) program.
Dr. Mark Osei-Assibey, President of
Finance Committee, presenting the report of the Committee, observed that Yedent Agro
The processing company, created in 2011, is a leading agri-food processor
in the country with experience in processing fortified mixed products like
Maisoyforte and Tomvita, corn flavor, sound for poultry feed and
cattle among others.
He said the company had applied for the government
support in the area of tax exemption under the 1D1F program to enable it to
acquiring a new processing plant with diversified capabilities in order to
improve its operations.
He said that the Ministry of Commerce and Industry
also acceded to the company and granted it 1D1F status, which would allow it to
benefit from the tax exemptions provided by the program.
In addition, the company intends to develop and
diversify its operations by investing in a new processing plant with
capabilities to significantly improve its installed capacity to produce super
cereals, corn flour, super grain plus, compound flour, oatmeal and animal feed,
among others, using local inputs mainly from local farmers.
The Chairman of the Finance Committee stated that
The general objective of the company is to consolidate its activities with the World Food
Program and Alternative Distribution Channels Established in the Retail Trade
market segment of the company's business and take full advantage of
opportunities in the bulk segment.
He added that the company also wanted to maintain
growth and improve cash flow and profitability.
Mr Benjamin Kpodo, Member of Parliament
for Ho Central in his comment expressed his concern about the government's tax exemption
to society, which he said had created revenue losses for the country.
He stated that Yedent Agro Processing Company, which
was created in 2011 is an old company and as such can not be clbadified as
1D1F program, let alone benefit from these tax incentives.
"If we really want to encourage factories to
be implanted in every district we should create new businesses
considered in the 1D1F programs, this is what we were told »
Mr. Kwaku Kwarteng, Deputy Minister of
Finance in his remarks said the 1D1F is a government initiative that
aims to ensure that industrialization is distributed as evenly as possible over the
The whole country.
He said to do that, the government should not
only help new businesses or activities to develop but also take steps to support
existing industrial activity that needs help, that's what they're looking for
make.
"So, the suggestion that these companies
already exists so we should not consider them as part of the 1D1F initiative
is to misunderstand politics "
Mr. Kwaku Kwarteng also refuted Mr.
Kpodo that the government had failed to build new businesses under the 1D1F
program and instead relived the old factories instead.
He explained that in terms of the year
year-over-year growth, the turnover was doing well especially compared to the recent
years, adding that the goal had been ambitious during the period.
However, he said that the government's strategy was to
open up economic activity by granting these reliefs to companies that are
able to expand, employ more people and pay more taxes.
Mr. Emmanuel Armah-Kofi Buah, Deputy of
Ellembelle, in his commentary, wondered whether the government's objective under the
1D1F, which is to create jobs for people had changed to live dying
companies.
He said that the government needs to identify
which are aligned with the objectives of 1D1F, adding that
was promised was to accelerate industrialization and generate jobs.
He said that state resources should not be used
to revive a company that had been mismanaged, dying and has no future to create
jobs for the people.
GNA
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