Madam Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Waiver of tax liability on equipment/materials to be imported or purchased locally, corporate and expatriate taxes amounting to €12,676,140.50, US$4,207,213.60 and GH¢4,998,849.27 in respect of Accra Tema Municipal Area (ATMA) Rural Water Supply Expansion (South and North Kpong) Project.
Madam Speaker, in doing so, I wish to present your Committee's Report.
The request for the waiver of taxes and duties on equipment, materials to be imported or purchased locally, corporate and expatriate taxes in respect of Accra Tema Matropolitan Area (ATMA) Rural Water Supply Expansion (South and North Kpong) Project was laid in the House on Tuesday, 26th May, 2009 in accordance with article 174 (2) of the 1992 Constitution of the Republic of Ghana.
The request was subsequently referred to the Finance Committee for consideration and report pursuant to Order 169 of the Standing Orders of the House.
The Committee met and considered the request with the Deputy Ministers for Finance and Economic Planning, Hon Seth Tekper and Hon Fiifi Kwetey and technical teams from the Ministry of Finance and
Economic Planning and Ghana Water Company Limited and hereby submits this Report.
The Kpong Water Treatment Plant serves all communities along the following routes: Akosombo-Kpong-Tema main road including the Accra Plains Area, the coastal areas east of Tema and the Kpong- Akuse area in the Eastern Region. The plant also serves the Akwapim Ridge in the Eastern Region and Dodowa area in the Greater Accra Region. It further serves the Manya and Yilo Krobo areas of Odumase and Somanya in the Eastern Region.
The plant was last rehabilitated and expanded to the current level in the year 1996. But since that rehabilitation, the number of inhabitants of the project area and its environs has increased significantly, thus necessitating an expansion of the plant to meet the increasing demand. 3.1 Approval of the Grant and Loan Agreement
Parliament on 25th March, 2008 approved the Grant and Loan Agreements in the sum of €41,029,976.00 and US$19,698,558.00 between the Govern- ment of the Republic of Ghana and the Government of Netherlands/ING Bank and Bank of Hapoalim of Israel to secure the necessary funds for the execution of the ATMA Rural Water Supply Expansion (South and North Kpong) Project.
4.1 Required Waiver
The amounts of tax waiver required
are as follows:
ATMA Rurals Project (South of Kpong)
Imports €12,676,140.50 Corporate GH¢770,300.02 Expatriate
ATMA Rurals Project (North of Kpong)
Imports US$4,207,213.60 Corporate GH¢430,709.57 Expatriate GH¢1,031,074.56
Attachment: Please, find attached as APPENDIX assessments conducted by the Customs, Excise and Preventive Service (CEPS) and the Internal Revenue Service (IRS) on the tax liability required to be waived.
The Committee observed that the Credit Agreement approved by Parliament in March 2008 for the execution of the project requires that all equipment and materials for the project as well as the corporate and expatriate incomes of the contractors be waived from the payment of all taxes and duties.
The Committee noted that beneficiary towns of the project in Greater-Accra Region include the following:
Dawa, Nyibenya, Dawhenya Camp, Afienya, Kpone, Prampram, Old Ningo, New Ningo, Anhwiam, Mangohonya, Ayitepa Kponguro, O m a n k o p e , L e k p o n g u r o , Luchubwe, Lekponya, Akplabanya, Menyum, Dodowa, Adam, Bula,