GFZB to prevent abuse of tax exemptions
The Ghana Free Zones Board (GFZB) has taken steps to ensure that investors in the enclave do not abuse the tax exemptions given them by the state.
Advertisement
Currently, the board has been given the power to grant exemptions to avoid the abuse of the system by non-deserving companies.
The Executive Secretary of the board, Mr Michael Okyere Baafi said: “We have been granted the authority to give tax exemptions to investors because we made a strong case at the presidency for it. With this privilege given us, we will proactively work to ensure that investors do not abuse the system, hence the separation of the department to ensure that each fully deals with its core mandate”.
Speaking to GRAPHIC BUSINESS on Monday, Mr Baafi said, “all we can tell our clients is that they need to work hand in hand with us so that what has to be paid will be paid. We do not want any abuses in the system to prompt a reversal of the government’s action which will mean that free zones companies will not be exempted from paying taxes”.
Also to check the abuses, the board had de-coupled its risk management department into two units namely monitoring, and compliance to ensure effective discharge of their duties.
Tax exemptions
Government, as part of efforts to plug the loopholes in the mobilisation of tax revenue, has taken some steps to rationalise the granting of tax exemptions.
Per the new direction, all companies, irrespective of their origin are to pay their normal taxes at the ports and apply later for exemptions. This application will be vetted by the Finance Minister and where necessary, grant the exemption.
At a breakfast forum in Accra last month under the auspices of the Ghana Investment Promotion Centre (GIPC), some business people welcomed the government’s new policy on the exemptions but called for prompt action to refund the monies paid should their applications be granted.
Other Trending Stories
Land banks
On the issue of lands, Mr Baafi said the board had acquired lands in many parts of the country with the aim of giving them to interested investors to do business.
Many investors have been frustrated by the cumbersome land acquisition procedures, multiple sale of the same piece of land in the country to different interested parties among many other challenges.
“It is against this background that we at the free zones decided to have the land which we will release to investors, local and foreign as and when they come in”, he said.
{loadmodule mod_banners,Nativead1}
Electricity cost
Mr Baafi said the companies at the Tema enclave had persistently complained about high cost of electricity tariffs “but we are in talks with the power companies to find a lasting solution to the problems”.
The companies in the enclave are complaining that they are being made to pay higher tariffs, a phenomenon which affects their cost of operations and makes them uncompetitive because their competitors outside the enclave do not suffer that challenge.
“Their concerns are genuine and we will ensure that we expedite action on these steps to ensure that the companies get affordable tariffs ”, he said.
Focus on local business
Mr Baafi said the board was intensifying steps to change the perception that the free zones were reserved for foreigners.
He said the enclave was also open to local companies, adding that “once they can produce and export at least 70 per cent of their produce, they qualify to operate within the enclave and enjoy all the incentives just as their foreign counterparts”.
“Our doors are open and we can only urge local business people to come in to make enquiries and we are ready to assist them,” he said.