Debates of 1 Nov 2013

MR FIRST DEPUTY SPEAKER
PRAYERS 10:45 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:45 a.m.
  • [No correction was made to the Votes and proceedings of Thursday, 31st October, 2013.]
    • Mr Henry Quartey 10:45 a.m.
    Mr Speaker, thank you for the opportunity.
    With the greatest respect to the House, I am wondering whether we form a quorum.
    Mr First Deputy Speaker 10:45 a.m.
    Hon
    BUSINESS OF THE HOUSE 10:45 a.m.
    Mr Speaker, the Committee according- ly submits its Report as follows 10:45 a.m.
    Arrangement of Business
    Question(s)
    Mr Speaker, the Committee has pro- grammed the following Ministers to re- spond to Questions asked of them during the week:
    No. of Question(s)
    i. Minister for Health -- 2
    ii. Minister for Food and Agriculture -- 1
    Total number of Questions -- 3
    Mr Speaker, in all, two (2) Ministers are expected to attend upon the House to respond to three (3) Questions during the week. Statements
    Mr Speaker, pursuant to Standing Order 70(2), Ministers of State may be permitted to make Statements of Government policy. Your goodself may also admit Statements to be made in the House by Hon Members in accordance with Order 72.
    Bills, Papers and Reports
    Mr Speaker, Bills may be presented to
    the House for First Reading and those of urgent nature may be taken through the various stages in one day, in accordance with Order 119. Papers and committee reports may also be presented to the House.
    Motions and Resolutions
    Mr Speaker, Motions may be debated and their consequential Resolutions, if any, taken during the week.
    One-day pre-budget workshop for
    Members
    Mr Speaker, the Business Committee takes this opportunity to inform Members that a one-day pre-budget workshop is being organised for all Hon Members of Parliament. The workshop is expected to take place in the Chamber of Parliament House on Monday, 4th November, 2013. All Hon Members are kindly urged to avail themselves to participate in the workshop. The Hon Minister for Finance would be in attendance to provide pertinent informa- tion which would guide Members in the consideration of the budget.
    Conclusion
    Mr Speaker, in accordance with Stand- ing Order 160(2) and subject to Standing Order 53, the Committee submits to this Honourable House, the order in which the Business of the house shall be taken during the week.

    Questions --

    *12. Mr Emmanuel Kwasi Bedzrah (Ho West): To ask the Minister for Health, what measures the Ministry has put in place to convert the Ho Regional Hospital into a teaching hospital for the University of Health and Allied Sciences.

    *20. Mr Samuel Ato Amoah (Twifo Atti Morkwa): To ask the Minister for Health when the Praso District Hospital Project will commence.

    Statements

    Presentation of Papers --

    Report of the Committee on Con- stitutional, Legal and Parliamentary Affairs on the Plant Breeders Bill,

    2013.

    Presentation and First Reading of Bills --

    Export Trade, Agricultural and Industrial Development Fund Bill,

    2013.

    Consideration Stage of Bills --

    Value Added Tax Bill, 2013

    Continuation

    Committee sittings.

    Questions --

    *16. Mr Stephen Kunsu (Kintampo North): To ask the Minister for Food and Agriculture the status of the New Longoro Irrigation Project.

    Presentation of Papers --

    (a) Report of the Auditor-General on the Public Accounts of Ghana (Pre-University Educational In- stitutions) for the financial year ended 31st December, 2010.

    (b) Report of the Auditor-General on the Accounts of District Assemblies for the year ended December, 2010.

    (c) Report of the Auditor-General on the Statement of Foreign Exchange Receipts and Pay- ments of the Bank of Ghana for the second half year ended 31st December, 2011.

    Statements

    Consideration Stage of Bills --

    Committee sittings

    Statements

    Presentation of Papers --

    Report of the Special Committee on the appointment of an Auditor to audit the accounts of the Office of the Auditor-General.

    Motions--

    Second Reading of Bills --

    Plant Breeders Bill, 2013

    Consideration Stage of Bills --

    Statements

    Motions --

    Adoption of the Report of the Special Committee on the ap- pointment of an Auditor to audit the accounts of the Office of the Auditor-General.

    Third Reading of Bills --

    Value Added Tax Bill, 2013

    Mr Speaker, this is the programme for the week.

    Respectfully submitted.
    Mr First Deputy Speaker 10:55 a.m.
    Hon Members, any comments?
    Dr Anthony A. Osei 10:55 a.m.
    Mr Speaker, may I know from the Deputy Majority Leader if Monday's workshop is being considered
    as a regular Sitting of the House or as some ordinary meeting? What is it? This is because we are being invited to come here on Monday at 10.00 a.m. Is the House Sitting formally or it is just a workshop?
    If you consider it a regular workshop, it may appear that it is not that crucial; so, we need to define it properly; so that when we are coming, we know that it is a Sitting of the House.
    Mr Agbesi 10:55 a.m.
    Mr Speaker, Monday's Sitting is a workshop, a pre-budget work- shop. It is not a Sitting of Parliament, but a workshop. And as it stands, Hon Mem- bers must dress as coming to Parliament if they choose to do so. It is a workshop and whatever goes into attendance at a workshop --
    Dr A. A. Osei 10:55 a.m.
    Mr Speaker, in the Chamber of Parliament, we are having a workshop and Hon Members are talking about dressing. So, is it a workshop or a Sitting of the House?
    Mr Agbesi 10:55 a.m.
    Mr Speaker, we want to stress that it is a workshop. It is a pre- budget workshop in the Chamber. Instead of going outside Accra, we have chosen to have the workshop in Accra and in the Chamber of the House.
    Mr Joseph Yieleh Chireh 10:55 a.m.
    Mr Speak- er, he just said that we will have the pre-budget workshop on Monday. He has not indicated the time and we already have — [Interruption.] Where is the time?
    Mr First Deputy Speaker 10:55 a.m.
    Hon Member, address the Chair. The time is
    Mr Chireh 10 a.m.
    Mr Speaker, 10.00 a.m.
    Knowing the attitude of Members of Par- liament —[Uproar.]Why? I have not fin- ished. I said knowing — what attitude is it that you are worried about? [Laughter.]
    Mr First Deputy Speaker 10 a.m.
    All right.
    Hon Members, in the absence of any further comments, the Business Statement is hereby adopted.
    ORAL ANSWERS TO QUESTIONS 10 a.m.
    MINISTRY OF ROADS AND 10 a.m.
    HIGHWAYS 10 a.m.
    Mr Speaker, the scope of works in- cluded 10 a.m.
    upgrading of the existing 9.3 metres single bituminous surface treated road to a 12.3metres asphaltic con- crete road;
    improvement of both horizontal and vertical alignments in a bid to eliminate dangerous curves which hitherto led to rampant fatal acci- dents on the section of the road;
    provision of pedestrian walkways, bus bays and parking lanes in towns along the road; and
    provision of road furniture, includ- ing road signs, road markings and other safety devices to enhance road safety, especially pedestrian safety in towns.
    Mr Speaker, the project is substan- tially completed. All works have been completed with all safety features in- stalled. In order to reduce overloading and guarantee the life-span of the road, an axle load station has been constructed at Jema to control axle loads of trucks on the road.
    Mr First Deputy Speaker 10 a.m.
    Hon Member, do you have any supplementary question?
    Mr Kunsu 10 a.m.
    Mr Speaker, I would want to find out from the Hon Minister whether he has personally used the road recently.
    Alhaji Sulemani 10 a.m.
    Mr Speaker, I live in the northern part of Ghana and normally travel on that road to go to the North.
    Mr Kunsu 10 a.m.
    Mr Speaker, is the Hon Minister aware that bus bays, parking spaces and pedestrian walk-ways have not been provided in Kintampo town?
    Alhaji Sulemani 10 a.m.
    Mr Speaker, there is a separate Question on Kintampo. I thought he would wait until we reached there.
    Mr First Deputy Speaker 10 a.m.
    Hon Member, you have asked your question with regard to the Apaaso-Kintampo high- way. Now, your supplementary questions appear to be directed towards urban roads. Do you get the problem? So, if you could narrow yourself to the area of your Ques- tion, I would be grateful.
    Mr Kunsu 10 a.m.
    Mr Speaker, the road passes through Kintampo and like the Hon Minister said, it is part of the main road linking Kumasi to the North. So, it is our main road and the main street in Kintampo town.
    Alhaji Sulemani 10 a.m.
    Mr Speaker, I think my Colleague has a Question on Kintampo and that will address his supplementary questions.
    Mr Ignatius Baffour Awuah 10 a.m.
    Mr Speaker, in the Hon Minister's Answer, he said that funding for the project was com- ing from the African Development Bank (AfDB) and that the project was being exe- cuted in two phases-- Techiman-Apaaso, 53.7 kilometres and Apaaso-Kintampo, 6.3 kilometres. I would want to know from the Hon Minister whether the first portion of Techiman-Apaaso, the funding for that also came from the ADB and when was that one secured?
    Alhaji Sulemani 11:05 a.m.
    Mr Speaker, if he can rephrase the question; I did not hear him well.
    Mr Awuah 11:05 a.m.
    Mr Speaker, in the Hon Minister's Answer, he stated that funding for the project came from the AfDB and the project was being executed in two phases. Phase l, Techiman -Apaaso, 53.7
    kilometres and phase ll, Apaaso - Kintam- po, 6.3 kilometres. I would want to know from him whether it is the two phases that are being funded with funds from AfDB and if not, when was the first one secured?
    Alhaji Sulemani 11:05 a.m.
    Mr Speaker, I said the project has already been executed, it was not being executed. The project was executed in phases, with funding from the Government of Ghana and the African Development Bank. That is what I said.
    Mr Awuah 11:05 a.m.
    Mr Speaker, I happened to be the Regional Minister for Brong Ahafo when the project was awarded and it was awarded way back in 2008. That is why I asked the Minister. I would want to be sure whether the Hon Minister is very sure of the Answer he has given us. Mr Speaker, I would want to get a confirma- tion from him whether he still thinks that the funding was what he had stated here.
    Alhaji Sulemani 11:05 a.m.
    Mr Speaker, the records I had, indicated that the road was funded from the African Development Bank (ADB) and the Government of Ghana (GoG).
    Dr Anthony Akoto Osei 11:05 a.m.
    Mr Speaker,
    I think the difficulty is the way the Answer is put. You see, the Question was asked specifically on Apaaso-Kintampo road, which is 6.3 kilometres. But the way the Answer has been written, it is as if Messrs Shinsung Engineering and Construction Company Limited is doing it in two parts.
    The point the former Regional Minister is making is that, the first part was done before Messrs Shinsung Engineering and Construction Company Limited came in.
    So, if he had limited his Answer to only the Apaaso-Kintampo section, and said it was coming from AfDB and GoG, I think it would have been sufficient. But the Answer gives the impression that the
    GoG and AfDB are funding the entire two phases which is not really accurate. So, I think that was the clarification he was seeking. The 6.3 kilometres - yes GoG and AfDB. So, maybe, if he could clarify that, it would help.
    Mr First Deputy Speaker 11:05 a.m.
    I believe the Hon Minister has given the clarifica- tion; it is not a question. So, shall we move on?
    Yes, any more supplementary ques- tions?
    Mr Frank Annoh-Dompreh 11:05 a.m.
    Mr Speaker, I have listened to the Hon Minis- ter attentively and from his own Answers, I have two issues: The first one has to do with projects status, and I heard the Min- ister loud and clear, as written here, that the project is substantially completed; it is on page 27 --
    Mr First Deputy Speaker 11:05 a.m.
    Yes, go ahead with your question.
    Mr Annoh-Dompreh 11:05 a.m.
    M r Speaker, can the Hon Minister be more specific? By saying that the project is sub- stantially completed, I am not impressed and it is a bit vague. So, if the Hon Min- ister could be much more specific.
    Secondly, Mr Speaker, following the preponderance of challenges on our roads as shown by the number of Questions concerning roads in our country, I would want to plead for your indulgence to ask the Hon Minister what the Ministry is doing about the Nsawam-Adoagyiri road.
    Mr First Deputy Speaker 11:05 a.m.
    Hon Member, you are out of order -- [Laugh- ter.]
    Hon Minister, answer the first part of
    the question and ignore the second part.
    Alhaji Sulemani 11:05 a.m.
    Thank you very much.
    Mr Speaker, the 6.3 kilometres between Apaaso and Kintampo are completed.
    Mr David T. Assumeng 11:05 a.m.
    Mr Speak- er, according to the Minister, this road is referred to as the central corridor road. Please, could he kindly educate me on the number of corridor roads that we have and maybe, name them? If this is a central corridor road, how many corridor roads do we have?
    Alhaji Sulemani 11:05 a.m.
    Mr Speaker, we have the eastern corridor which is from Tema, all the way through Asikuma junc- tion and all the way to Kulungugu. We also have the western corridor, which is all the way from Elubo through to BrongA- hafo to Hamile in the Upper West Region. We also have the coastal road which is from Takoradi to Aflao.
    Mr First Deputy Speaker 11:05 a.m.
    Which one of them is the central corridor? I think that is what he wants to know.
    Alhaji Sulemani 11:05 a.m.
    Mr Speaker, the central corridor is from Accra through Kumasi to Paga.
    Dr Matthew O. Prempeh 11:05 a.m.
    Mr Speak- er, I would want to know from the Hon Minister -- the central corridor road, undoubtedly, are the number one road for usage in this country. What are the sub- stantial parts of the central corridor road that are left to be done and when would you complete it?
    Mr First Deputy Speaker 11:05 a.m.
    Hon Member, you are out of order -- [Laugh- ter.]
    Alhaji Ibrahim D. Abubakari 11:05 a.m.
    Mr Speaker, if I heard the Minister saying that the Techiman road is the central corridor, then what is the Ashanti-Mam- pong-Ejuria-Yeji-Salaga road? Is it not the central corridor? Which one is the central corridor? He should tell us which one is the central corridor, please.
    Mr Alfred K. Agbesi 11:05 a.m.
    Mr Speaker, in the Answer, at page 26, the Minister has provided in the last paragraph, “provision of road furniture . . .” and he named some of them as road signs, road markings and other safety devices to enhance road safe- ty, especially pedestrian safety in towns.
    I would like to know from the Hon Minister, what are the other road furniture and maybe, for the education of our stu- dents who are here. What is the other road furniture, if he could be kind enough to let us know?
    Alhaji Sulemani 11:05 a.m.
    Mr Speaker, road furniture includes road signs, road mark- ings, safety devices; like when you are getting into town, you would see the signboards indicating 50 kilometres speed limit and others. Those are what we call road furniture.
    Mr First Deputy Speaker 11:05 a.m.
    All right. We move on to the next Question, which stands in the name of the same person, Mr Stephen Kunsu (Kintampo North).
    Construction of Kintampo town roads and dual carriageway
    Q.18. Mr Stephen Kunsu asked the Minister for Roads and Highways when the proposed construction of the five- kilometre Kintampo town roads and the dual carriageway of the main road within the Kintampo town would commence.
    Alhaji Amidu Amin Sulemani 11:05 a.m.
    Mr
    Speaker, Kintampo town, located at the geographical centre of the country, is a major transit point and serves as rest stop for most vehicular traffic along the
    Accra-Paga corridor, with the attendant commercial activities. This always leads to traffic congestion and undue delay through traffic along the corridor.
    The construction of this road will there- fore, remove the bottleneck in traffic flow in Kintampo and also enhance road traffic safety along the corridor.
    The Government of Ghana signed a contract with Messrs Societe d'Equip- ment et Construction (SOECO) of Sen- egal, who had already mobilised with all their equipment including asphaltic plant at a nearby site at Nkenkasu, to upgrade the section of the main carriageway in Kintampo town to a dual carriageway, upgrade 5 kilometres of some selected roads in Kintampo town, and also recon- struct the remaining 680 metre stretch of road in Techiman town, which links the Techiman-Kintampo road to the Te- chiman-Wenchi road.
    The funding source is GoG and pro- vision has been made in the 2013 annual budget for execution of the works.
    Mr Speaker, the scope of works in- clude 11:05 a.m.
    Construction of 2.5kilometre as- phal- tic concrete two-lane carriage- way to complete the dual carriage- way in Kintampo town.
    Upgrading of 5 kilometres of se- lected roads in Kintampo town to bitumen surface treatment.
    Construction of U-drains and other drainage facilities in Kintampo town.
    Construction of bus bays, pedes- trian walkways and other safety features.
    Currently, the contractor is awaiting the issuance of specific warrant (that is Commencement Certificate) to enable them mobilise to site and commence work. Routine maintenance works will however, be carried out on the various road sections until the project commences.
    Mr Kunsu 11:15 a.m.
    Mr Speaker, according to the Hon Minister, provision has been made in the 2013 annual budget for the execution of the works. The year 2013 has almost ended and the Commencement Certificate is yet to be issued. What is the assurance that this work would be done?
    Alhaji Sulemani 11:15 a.m.
    Mr Speaker, we have a number of roads for which we have requested Commencement Certificates at the Ministry of Finance. When I saw this Question, I got in touch with my Hon Colleague Minister for Finance and they are working on them.
    Mr Kunsu 11:15 a.m.
    Mr Speaker, I am happy to hear this from the Hon Minister. But is the Hon Minister aware that the delay in the execution of the dual carriageway is causing a lot of accidents in the town?
    Alhaji Sulemani 11:15 a.m.
    Mr Speaker, my Hon Colleague has raised a very important is- sue. I would want to state emphatically that it is not the absence of the dual car- riageway that is causing the accidents; it is rather as a result of indiscipline associated with reckless driving through the town that is causing the accidents.
    Mr First Deputy Speaker 11:15 a.m.
    Very well.
    We move on to the next Question, Question number 19, in the name of Hon Stephen Kunsu, Kintampo North --
    rose rose
    Mr First Deputy Speaker 11:15 a.m.
    Hon Mem- ber, please, hold on.
    Yes Hon Member --
    Mr Awuah 11:15 a.m.
    Mr Speaker, I would want to draw your attention that some Hon Members from my side wanted to ask supplementary questions; I do not know whether you are not allowing supplemen- tary questions.
    Mr First Deputy Speaker 11:15 a.m.
    I did not see anybody up. Very well, let us go back and allow them.
    Dr A. A. Osei 11:15 a.m.
    Mr Speaker, in his Answer, the Hon Minister, in the last line said --
    “The funding source is GoG and provision has been made in the 2013 annual budget for the execution of the works.”
    Can the Hon Minister tell us how much funding was made available in the 2013 budget? I have a copy; I cannot find it. So, maybe, he would be able to tell us.
    Alhaji Sulemani 11:15 a.m.
    Mr Speaker, I will find out and give him the specific amount.
    Mr First Deputy Speaker 11:15 a.m.
    Yes, any more questions?
    Mr Afenyo-Markin 11:15 a.m.
    Mr Speaker, just a clarification.
    The Hon Minister avers that Kintampo is located at the geographical centre of the country. Mr Speaker, I need some further clarifications as to the -- [Interruption.] Yes, that is why I need further clarifica- tion, Mr Speaker, as to whether really, Kintampo is the geo- graphical centre of Ghana. I need clarification, Mr Speaker, respectfully -- and the source.
    Alhaji Sulemani 11:15 a.m.
    Mr Speaker, it is
    rose
    Mr First Deputy Speaker 11:15 a.m.
    Hon Member, you have had your opportunity, I do not know.
    Dr A. A. Osei 11:15 a.m.
    Mr Speaker, he just gave an answer which is categorically incorrect. In the past, that used to be the case but he should google and find out the centre of Ghana. It is not Kintampo; it used to be. So, this is factually --
    Mr First Deputy Speaker 11:15 a.m.
    Hon Mem- ber, you are not asking a question. This is Question time -- [Interruption.] Very well. Your point is well taken. Thank you.
    Any more on this Question and we move on to another Question --
    rose
    Mr First Deputy Speaker 11:15 a.m.
    You have had your opportunity. Is it not so, Hon Member?
    Mr Afenyo-Markins 11:15 a.m.
    Mr Speaker, the Hon Minister did say that it is common knowledge. Mr Speaker, with the greatest respect, this is a House of records and if --
    Mr First Deputy Speaker 11:15 a.m.
    Hon Member, we have gone past that. With the contribution by Hon Dr Akoto Osei, I think we are alright. Shall we move on?
    Yes, Hon Kunsu, can you go on with the next Question?
    Mr Kunsu 11:15 a.m.
    Mr Speaker, before I come to the next Question, I would like to clarify this point.
    Kintampo is the central point of Ghana and if he cares to know --
    Mr First Deputy Speaker 11:15 a.m.
    Hon Member, you are out of order. Ask your Question.
    Soronuase-Ntariban-Busauma Road in the Kintampo North
    Constituency (Construction)
    Q. 19. Mr Stephen Kunsu asked the Minister for Roads and Highways what plans the Ministry had to construct the road from Soronuase through Ntariban to Busuama in the Kintampo North Con- stituency.
    Alhaji Sulemani 11:15 a.m.
    Mr Speaker, the Soronuase -Ntariban-Busuama road is a feeder road located in the Kintampo North District of the Brong Ahafo Region. The length of the road is 21.0 kilometres The section from Soronuase to Ntariban is 14.0 kilometres and is un-engineered. The stretch from Ntrariban to Busuama is 7.0 kilometres and is engineered.
    The un-engineered section is in a deplorable state and needs to be reha- bilitated. Routine maintenance would be undertaken on the engineered section during the last quarter of the year while engineering studies are carried out on the road this year and based on the outcome of the studies, the necessary intervention will be carried out in 2014.
    Mr Kunsu 11:15 a.m.
    Mr Speaker, I would like to know from the Hon Minister when the routine maintenance would be undertaken since the last quarter of the year, the Hon Minister mentioned, has almost ended.
    Alhaji Sulemani 11:15 a.m.
    Mr Speaker, the De- partment of Feeder Roads is in the process of advertising their routine maintenance works as has just been done by the Ghana Highway Authority. So, very soon, Mr Speaker, they would come out with the advertisement.
    Mr First Deputy Speaker 11:15 a.m.
    Any more questions? No? Very well.
    Hon Minister, we thank you very much for attending upon this House.
    Hon Members, we would now move on to the next item on the Order Paper. It is a Motion by the Committee on Defence and Interior.
    Hon Deputy Majority Leader --
    Mr Agbesi 11:15 a.m.
    Mr Speaker, the Chairman of the Committee on Defence and Interior has informed us that he cannot take the Motion today. I think there is an agree- ment -- we will take it on Tuesday, Mr Speaker -- if we can step it down.
    Mr First Deputy Speaker 11:15 a.m.
    All right. So, give us directions. What do we do next?
    Mr Agbesi 11:15 a.m.
    Mr Speaker, if we can take item 8 -- the Value Added Tax Bill --
    Mr First Deputy Speaker 11:25 a.m.
    Hon Members, as we take up this matter, I would like to inform Hon Members that Mr Speaker has been briefed about the work done insofar as this Value Added Tax (Amendment) Bill goes. The Committee members, together with the draftspersons from the Attorney-General's Department, the Ghana Revenue Authority and repre- sentatives of the Ministry of Finance all participated in this exercise.
    As much as possible, we would want to cut down on the debate, because a lot of work has already gone into bringing the proposed amendments to this stage. It is not to shut the door to any debate, but as much as possible, let us try to cut down on it. This is because we need to go through with this exercise before we can take up the Budget Statement, which is to be presented to this august House in the very near future.
    So, we would move on straightaway.

    Hon Chairman of the Committee, can you guide us?
    Mr James K. Avedzi 11:25 a.m.
    Mr Speaker, on the new classification which can be found at page 3 of today's Order Paper, I have tried as much as possible to do some cross-referencing. So, we would take the new subclauses, our reference to the Bill where it can be located,m so that Hon Members can follow the debate. I would want to inform Hon Members before I move the Motion.
    Mr First Deputy Speaker 11:25 a.m.
    Very well Go ahead and move the Motion.
    BILLS -- CONSIDERATION 11:25 a.m.
    STAGE 11:25 a.m.
    Mr Jame K. Avedzi 11:25 a.m.
    Mr Speaker, I beg to move, clause 6, subclauses (7) to (24) delete “and” and insert the following:
    “Period for becoming a taxable person
    7. A person who is not registered, but who is required to apply for registration under this Act, is a taxable person from the begin- ning of the tax period immedi- ately following the tax period in which the duty to apply for registration arose.”
    This is taken from clause 6, subclause (12), which is located on page 7 of the Bill.
    Question put and amendment agreed to.
    Mr Avedzi 11:25 a.m.
    Mr Speaker, the new
    Mr Speaker, I beg to move 11:25 a.m.
    “Notice of registration
    8. (1) Subject to subsection (2), the Commissioner-General shall within thirty days after the re- ceipt of an application for reg- istration under this section give notice to the applicant for regis- tration of the decision to register or not to register the person.
    (2) Where the Commission- er-General fails to serve notice, the Commissioner-General is dee-med to have made a decision to register the applicant except where the Commissioner-Gen- eral is satisfied that the person is not eligible to apply for reg- istration.
    (3) For the purposes of this, where within the thirty days specified under subsection (1), the Commissioner-General requests additional information from the applicant in order to determine if the applicant is eligible to apply for registration, the thirty-day period shall be suspended and the Commis- sioner-General shall have not less than fourteen days after the Commissioner-General receives the required information in the form prescribed by the Commis- sioner-General to give the notice under subsection (1).”
    Mr William O. Boafo 11:25 a.m.
    Mr Speaker, I would want to find out from the Hon
    Chairman, how long the suspension can be carried out. Is it indefinite or for a period?
    Mr Avedzi 11:25 a.m.
    Mr Speaker, it is not stated in the Bill and I do not assume that it is going to be indefinite. After a period, the applicant can reapply. And if the condi- tions are satisfied, he is granted.
    Mr First Deputy Speaker 11:25 a.m.
    Hon Boafo, are you alright with it?
    Mr Boafo 11:25 a.m.
    Mr Speaker, you have indicated earlier that this matter has been thoroughly discussed; so, we do not want to protract matters.
    Mr First Deputy Speaker 11:25 a.m.
    Very well.
    Thank you very much.
    Question put and amendment agreed to.
    Mr Avedzi 11:25 a.m.
    Mr Speaker, the next one is subheaded: “Certificate of registration.” That is subclause (9) and this is located on page 7 of the Bill; clause 6 (10) and (11).
    “Certificate of registration
    9. (1) The Commissioner-General shall issue to each person reg- istered for Value Added Tax, a certificate of registration.
    (2) A registered person shall exhib- it the certificate of registration:
    (a) at the principal place of
    business of the person;
    (b) at every other location at which the person engages in a taxable activity”.
    Dr A. A. Osei 11:25 a.m.
    Mr Speaker, I crave the indulgence of the Hon Chairman to add the word “and” at the end of (a). The original rendition has “and”. It is very important because if you look at the original Bill,
    the word “and” at the end of (a) is there, but it has been taken off in this rendition.
    Mr Avedzi 11:25 a.m.
    Mr Speaker, exactly so. I therefore further amend the amendment to include “and” at the end of “person”.
    Question put and amendment agreed to.
    Mr Avedzi 11:25 a.m.
    Mr Speaker, the next one is clause 10 -- “Notice of cancellation in respect of turnover”, and that is on page 7 of the Bill, clause 6 (13) --
    “Notice of cancellation in respect of turnover
    10. The Commissioner-General may in writing notify a person that that person has, within the time specified in the notice, made taxable supplies (a) in excess of turnover thres-
    hold, or
    (b) below the turnover threshold, specified in section 6 is reg- isterable as a taxable person or not registerable, and the Commissioner-General shall act accordingly by registering or cancelling the registration of the person.
    Question put and amendment agreed to.
    Mr Avedzi 11:25 a.m.
    Mr Speaker, the next one is clause 11 -- “Exceptions regarding thresholds.” That can be found on page 8 of the Bill; clause 6 (14) and (15).
    “Exceptions regarding thresholds
    11. (1) Despite the threshold rule in section 6 --
    (a) a promoter of public en-
    ter-tainment,
    (b) an auctioneer, or
    (c) a national, regional, local or other authority or body, which carries on any taxa- ble activity shall apply for registration.
    (2) For the purposes of subsection
    (1) --
    (a) the national, regional, local or other authority or body shall apply for registration within thirty days after the date the national, regional, local or other authority or body commences a taxable activity;
    (b) an auctioneer shall apply for registration within thir- ty days after the date on which that person becomes an auctioneer; or
    (c) a promoter of public en- tertainment, shall apply for registration at least forty-eight hours before the commencement of the public entertainment if, within any period of twelve or less months that includes the date of the public entertainment to which the application re- lates, the total value of taxable supplies of the promoter is reasonably expected to exceed ten thousand Ghana Cedis.'
    Question put and amendment agreed to.
    Clause 6 (12) --
    Mr Avedzi 11:35 a.m.
    Mr Speaker, the next one
    Mr Avedzi 11:35 a.m.
    Mr Speaker, the next one is subclause 13 -- “Application for vol- untary registration” and this can be found on pages 8 and 9 of the Bill, that is clause 6 subclauses (19) and (20).
    Mr Speaker, I beg to move,
    “Application for voluntary regis- tration.
    13. (1) A person who is not required to be registered may apply vol- untarily to be registered by the Commissioner-General.
    Mr First Deputy Speaker 11:35 a.m.
    I have a
    bit of a problem.
    Mr Chireh 11:35 a.m.
    Mr Speaker, the way it is put -- to forecast that somebody is not likely to keep records is not a predictable thing. This is because one ought to say that the person has to do a thing -- failure to do it -- But to say one expects that one will not be able to keep records; how can one do that? How does one determine that?
    Mr First Deputy Speaker 11:35 a.m.
    Hon Chair- man, that is exactly my concern.
    Mr Avedzi 11:35 a.m.
    Mr Speaker, I think that it is easy to determine if a business, which is registered, has the resources to keep proper records or books of accounts. and one realises that this business cannot even
    employ an accounts clerk to keep the daily records of that business, that person cannot keep proper books of accounts.
    That is what we are talking about. So, it is easy to determine from the date of registration, that this business cannot keep proper records of accounts and therefore, cannot be registered.
    Mr Chireh 11:35 a.m.
    I think that there must be something qualifying it -- “reasonable cause to believe” -- but not to believe that one will not --
    In any case, why is he saying that the person must employ another person? I can keep my records without employing any- body. I can contract out that to somebody else to keep. People do that. There are companies and even government agencies that contract accountants to prepare their books for them.
    Mr First Deputy Speaker 11:35 a.m.
    Well, I tend to share your concern and I would go with you, with regard to the inclusion of the word “reasonable”. Is it there?
    Dr A. A. Osei 11:35 a.m.
    Please, read properly; it
    is there -- paragraph (b) “has reasonable ground …”
    Alhaji Abubakari 11:35 a.m.
    Mr Speaker, I agree with the Hon Member for Wa West that we do not need an accounts clerk to keep a good record. One can employ an- ybody to do that. However, one can tell if a company is keeping a good record just by finding out if it has a book. But one can employ any other person to keep one's records for them.
    One does not need to employ an ac- counts clerk. This is because there are a lot of bookkeepers that one can engage to keep one's books. However, I agree with him that --
    Of course, one does not need to employ an accounts clerk to keep records. One can employ anybody anywhere to keep one's accounts. Or one can employ any accounting firm or accounts clerk to do that, but they do not need to be there. I am sure he is aware of that.
    Mr Avedzi 11:35 a.m.
    Mr Speaker, I know that there are audit firms that keep records for other companies. I know that. But I am saying that if the Commissioner-General has reasonable grounds to believe that one cannot keep proper books of accounts -- What I said was just an example I cited.
    Mr Chireh 11:35 a.m.
    Mr Speaker, the way they are opposing our suggestion, I still do not have a problem. But the word “will” -- it is not good in law-making to say that “the person will…” It means it is deliberate or the person has the intention not to.
    Mr Boafo 11:35 a.m.
    Mr Speaker, I was about to make the same comment about the “will” and maybe suggest “is not capable”. This is because the word “is” speaks of the present and at the same time, the future.
    Mr Speaker, his argument presupposes that as soon as the person applies, the Commissioner-General will look at the application and then makes his judge- ment. But I believe before he makes any decision, he would send a team to inspect the premises or the place of abode of the applicant. So, I think the provision should stand as it is, subject to the considera- tion of the word “will”, by substituting it with “is”.
    Mr Avedzi 11:35 a.m.
    Mr Speaker, I do not have any problem with the consideration of the word “will”.
    But just for further information, this particularly is applicable to voluntary reg- istration, where the applicant is voluntarily requesting the Commissioner-General to be registered under the Value Added Tax.
    Mr Chireh 11:35 a.m.
    Mr Speaker, if we agree with the principle, what we should say is, “is not able to” or “cannot”. Well, if we say “may” I would also agree with that -- “may not be able” or “cannot” if we want to say so -- [Interruption.] My Hon Colleagues are all saying “may”. I agree with the “may”.
    Appropriately, I beg to move for a further amendment, if you agree, that we say, “may not be able to keep proper re- cords” and it should follow the other two paragraphs consequentially.
    Mr First Deputy Speaker 11:35 a.m.
    Thank you
    very much. I think that solves our problem.
    Hon Chairman, I believe you have no objection to the proposed further amend- ment?
    Mr Avedzi 11:35 a.m.
    Mr Speaker, I have no objection.
    Dr A. A. Osei 11:45 a.m.
    Mr Speaker, I think “may not be able to” is too long -- “has reason-able grounds to believe that the person may not keep”, not “may not be able to”.
    Mr Chireh 11:45 a.m.
    I think I have to remove those words, otherwise, he will quarrel with me.You have “could not” and “will”; so, I agree entirely that, “may not keep proper records” -- So, the whole thing looks shorter and it is easier to understand.
    Mr Ayariga 11:45 a.m.
    Mr Speaker, I think
    that the two words “will not” and “may not” relating to the discretion of the Com- missioner- General, gives two different indications. Now, “will not”, places a higher standard, a burden of proof on the Commissioner-General, which is higher than he proving the“may not”. The “may not” has a lower standard.
    So, it is up to them. What level of responsibility do they want to impose on the Commissioner-General assuming that he refuses to register somebody and he is approached about why he did not register that person and then he says, “Oh, I am convinced that he will not”? It is of higher standard than “I am convinced that he may not”.
    So, it is up to them; what kind of re- sponsibility do they intend to impose on the Commissioner-General, should he decide to exercise his discretion not to register somebody? So, the Hon Member who moved the Motion has to explain to us what standard he wants us to impose on the Commissioner-General's exercise of that discretionary power.
    Mr Chireh 11:45 a.m.
    Mr Speaker, this standard he is imposing, I do not know where he is getting it from. It does not arise. If the whole thing is discretionary and to the ex- tent that they said on reasonable grounds, that qualifies the standard. Sometimes, we may argue ad infinitum whether rea- sonable grounds -- How are we going to determine that?
    But the point is that, if he, on reasona- ble grounds knows that one may not keep records, as he earlier suggested, they will send people there to find out. But we are given this same leeway because the person may not be able if he is just on the ground saying that he cannot.
    But he can hire somebody else to do it as was given in the example. So, the standard here is on reasonable cause,
    not the word “will” and it cannot be any more different from the “may”. So, I think that he should drop the matter and we will move on.
    Mr Boafo 11:45 a.m.
    Mr Speaker, the expression
    “will” is not referable to the Commission- er-General. It is referable --
    Mr First Deputy Speaker 11:45 a.m.
    Pre- cisely-- to the voluntary person who is applying to be registered.
    Mr Boafo 11:45 a.m.
    So, whether “will” or “may”, it is immaterial. It does not impose any burden on the Commissioner-General. It is a matter of discretion and it is meas- ured by whether he has done it reasonably or not.
    Mr First Deputy Speaker 11:45 a.m.
    I agree with you.
    Ms Adwoa S. Safo 11:45 a.m.
    Mr Speaker, just to add to what Hon Boafo said. I believe that in considering this Bill and the pro- visions as well, we should have it at the back of our minds what traditionally is the wording used in drafting.
    Conventionally, the word “will” does not sit well with drafting language and so, if it is permissive, as the Hon Mem- ber has said and most people agreed and Hon Yieleh Chireh is suggesting, then the appropriate word is “may”, or when it is mandatory, then it is “shall”.
    I do not see how we can substitute that for the traditional way of drafting in law.
    Mr First Deputy Speaker 11:45 a.m.
    I think
    generally, we are agreed with the further amendment to the amendment.
    Question put and amendment agreed to.
    Mr Avedzi 11:45 a.m.
    Mr Speaker, I beg to move,
    “Compulsory registration
    14. Where a person required to reg- ister under this Act fails to apply for registration, the Commis- sioner-General may register the person from the date determined by the Commissioner-General.”
    Mr First Deputy Speaker 11:45 a.m.
    What have you got there? “From the date to be determined', I think the “to be” is missing. Am I right?
    Mr Avedzi 11:45 a.m.
    “The date determined by the Commissioner-General” or “a date to be determined by the Commission- er-General.”
    Let us look at the two. Is it the “date de- termined by the Commissioner-General”?
    Mr Chireh 11:45 a.m.
    Mr Speaker, I do not understand the Hon Chairman's amend- ment. If one refuses or does not apply to register, the Commissioner-General decides to register the person compul-so- rily. So, he decides that today, he will register the person. I think I have seen it. It is correct.
    Alhaji Abubakari 11:45 a.m.
    Mr Speaker, if he
    says it is compulsory registration and then it says, “the Commissioner-General may” then where is the compulsory element here when the “may” is there? I thought if it is compulsory, then it should have been “shall” than to say “he may register”. Where is the compulsory element there, if he says that the thing is compulsory registration and the word is “may”? --
    Mr First Deputy Speaker 11:45 a.m.
    Hon Member, I think actually, what it is, is that the Commissioner-General is being given some element of discretion in this area. If you say “shall”, he might decide not to compulsorily register the person. So, it will tie his hands. I think that “may” is

    appropriate as it stands.
    Prof. George Y. Gyan-Baffour 11:45 a.m.
    Mr Speaker, compulsion means that you force somebody to do something and not that you do it and say it is compulsion. If it is automatic, then that is preferable to com- pulsion. So, I think what we are saying is that the person is automatically registered if the person refuses to do that.
    Is that what we mean here or the Com- missioner-General will force the person to do it? What is it? Is it he will do it for the person? If he is doing it for the person, then it is not a compulsion; it is automatic.
    Mr Avedzi 11:45 a.m.
    Mr Speaker, I think that the meaning of this compulsory registra-tion is that, the compulsory aspect comes to play when the Commissioner-General decides that a person is qualified to register and the person is not doing it, therefore, the Commissioner-General is not going to register the person.
    It is then compulsory for the person to register. That is why the main discretion is given to the Commissioner-General to determine that company ‘A' is going to be registered compulsorily. That is why we say, it is a compulsory registration. So, the Commissioner-General is given that first option to determine if a person qualifies or is supposed to register.
    As soon as it is determined, it becomes compulsory on the person's part to reg- ister. That is why the “may” is there; if not that “may” should have been “shall”.
    Prof. Gyan-Baffour 11:45 a.m.
    Actually, I am not concerned about the “may” and the “shall”. I am concerned about the word “compulsory”. Are we saying here that if a person is unable to do it, or does not do it and the Commissioner-General gets to know, he does it on his behalf or he forces the person to do it? What is it?
    This is because it looks like he is going to do it for him.
    Mr Avedzi 11:45 a.m.
    It is under the law; once the Commissioner-General determines that one is going to be registered, the Com- missioner-General registers the person but the person has to comply with that registration. It is simple.
    Mr Ayariga 11:55 a.m.
    Mr Speaker, on a second reading of this, I am tempted to agree with the proposal that if somebody is required to register under the Act and he fails to register and the Commissioner-General finds out that he is required to register, we ought not to give him discretion whether to register that person. It should be his job to automatically register that person, so that he is liable to pay tax.
    So the “may” should go, so that it would be “shall register the person”, so that we do not give that discretion to the Commissioner-General. This is because where it involves a large tax payer unit, looking the other way in exercise of his discretion, can mean that we would lose several millions of Ghana cedis.
    So, Mr Speaker, I think that we should replace it with “shall” so that it is mandato- ry that the Commissioner-General should register that person.
    Mr Agbesi 11:55 a.m.
    Mr Speaker, I also agree with the Hon Minister. If the heading is “compulsory registration” and it is found out that somebody is capable of being registered but he has not, then from that point, he must be registered. So, the Commissioner-General necessarily shall register the person.
    So, I agree with the Hon Minister's position.
    Mr Chireh 11:55 a.m.
    Mr Speaker, I would have agreed with the two Hon Members and I am still going to agree with them, but I still have a preliminary problem. This registra- tion, is it automatic? Does the company or the person not fill any forms? If it is so, we then have to say “shall compel the person to register.”
    In which case, he would write to the person to fill the necessary forms for him to register. If there is no preliminary filling of forms or any information from the one who is registering, then I move that we should accept the “shall” as an amendment to “may”.
    This is because he has satisfied the condition that the person ought to have done this and the headnote is indicative of what is in the main provision. We said “compulsory” and he is saying “may”; they do not sit well. It should be “shall”. We know the Supreme Court, when they want to interpret whether people signed or not, some say “shall”.
    Mr Avedzi 11:55 a.m.
    Mr Speaker, I agree with the change of the word “may” to “shall”. But the other word that the Hon Member used, I do not agree to that. So, we should change the “may” to “shall” -- “The Commissioner-General shall register the person …”
    Before they register, they will fill a form, so we do not need to say “shall compel the person to come and register”. No! The Commissioner-General shall register the person, so, we should change the “may” to “shall”.
    Dr A. A. Osei 11:55 a.m.
    Mr Speaker, I was going to agree with the Hon Chairman, so that we can move on.
    Mr First Deputy Speaker 11:55 a.m.
    What about if the Commissioner-General finds that this personality qualifies to register but has not registered? This is because certain challenges that, that personality or tax personality is facing, and we are asking the Commission-General to com- pulsorily
    register that person. What happens?
    Dr A. A. Osei 11:55 a.m.
    Mr Speaker, what challenges? The law is the law. There are certain criteria that they must satisfy, so their challenges are their problems. He must register them. The challenges must be overcome.
    MrAyariga 11:55 a.m.
    Mr Speaker, I think I need some better clarification here. The clause says --
    “The Commissioner-General may register the person from the date determined by the Commission- er-General”.
    When we say “the date determined” is it the date that he determines that they should be compulsorily registered or the date from which they become liable?
    Mr Avedzi 11:55 a.m.
    Mr Speaker, it is the effec- tive date of that registration. If today is the day that the registration is completed, the effective date is today. That is the date de- termined by the Commis-sioner-General.
    Mr Ghartey 11:55 a.m.
    Mr Speaker, just a clar- ification. If I should have registered two years ago, but I did not register, and so, I have not been performing my statutory ob- ligation and then the Commissioner-Gen- eral finds out today that I should have registered two years ago and he registers me today, do my obligations start from today or they start from two years ago?
    This is because what we are saying is that, on the date that he may determine -- It means that we are giving him the discretion to determine whether to start applying the law retrospectively, which then may create some liability -- or from today. From what date is he supposed to do it?
    Mr Avedzi 11:55 a.m.
    Mr Speaker, the date de- termined by the Commissioner-General. The Commissioner-General can deter-
    Mr Ghartey 11:55 a.m.
    Mr Speaker, I think a better rendition would then be from the date on which they became liable, not on the date -- There is a difference. Once we give the Commissioner-General the power to determine and when to determine, then we are bringing him into the realm of the Chancellor of Exchequer in the time of equity, where equity was long as the Chancellor's foot. If the date upon which they became liable --
    So, when the Commissioner-General says I became liable last year, I can go to court and challenge him that I did not become liable last year. So, instead of the date being determined by the Com- mis-sioner-General, if you do not mind, I would suggest that it should be from the date that they became liable to pay the tax.
    Mr Chireh 11:55 a.m.
    Mr Speaker, while ap- pre-ciating the arguments of the Second Deputy Speaker, I think that if the Hon Chairman would agree, the sentence should stop at “….register the person”. We do not talk about any date, which also makes it impossible for the person to go backwards. This is because it would be a retroactive registration or retrospective registration.
    I think that once a person is determined to be registrable, he shall register that per- son. He was giving a reason for the date as the date that registration is completed. If it is that one, we do not need it here in the law.
    In fact, if we want to give a time line for the Commissioner-General within
    which to register such a person, we can do that. Mr Speaker, it means that if he determines so, he shall register the person within a period -- within one week, one day, whatever.
    But the date he determines is likely to create the problem of saying that a person was due last two years, he is going to reg- ister that person with effect from that time and then the tax liability would come all the way from that date, which would not sit well with our constitutional provisions.
    Mr Avedzi 11:55 a.m.
    Mr Speaker, VAT is actually not paid by the taxable person or the person registered, he is collecting the VAT on behalf of Government. So, if the Commissioner-General determines that they should have been collecting that VAT, but because they were not registered, they were not collecting and he determines that and they are registered, they then start collecting the VAT.
    I think that solves the problem. It means that the effective date becomes the date when they start collecting the VAT on behalf of Government.
    Mr First Deputy Speaker 11:55 a.m.
    I am a little worried about retroactivity. When the person becomes registered, say, today and because that person failed to register a few months or years back and therefore, there is something that should have been col- lected from that tax personality which has not been collected, how do we enforce it?
    Mr Chireh 12:05 p.m.
    Mr Speaker, that is why I am suggesting that -- Can the Hon Chair- man listen to me, so that I will -- Where a person is required to register under this Act fails to apply for registration, the Commissioner-General shall register that person.
    Mr First Deputy Speaker 12:05 p.m.
    Yes, Hon Dr Akoto Osei, after him, the Hon Member
    for Takoradi. The technical people have just sent a note to the Minister -- it may help us. So, if the Hon Chairman reads the note--
    Mr First Deputy Speaker 12:05 p.m.
    If the Hon Member may give us a little of room.
    Yes, Hon Member for Takoradi?
    Mr Kwabena O. Darko-Mensah 12:05 p.m.
    Mr Speaker, I strongly believe that from what the Hon Chairman said, it would be appro- priate to stop, where Hon Chireh advised us to stop, so that there is no retrospectivity to the issue. I also do believe that if the Registrar-General knows somebody has been collecting the VAT, he should have that capacity to determine it as early as possible instead of trying to go back into the records.
    So, I believe that we should take what Hon Chireh has advised us to take -- we should end at “shall register the person”; it should end there.
    Mr First Deputy Speaker 12:05 p.m.
    Yes, Hon Minister, we shall give you the last word but let us hear from the Hon Minister for Information and Media Relations and then the Hon Deputy Majority Leader.
    Mr Ayariga 12:05 p.m.
    Mr Speaker, I think Hon Joe Ghartey raised an issue that I was also concerned about and the Hon Chairman tried to explain conditions under which liability to pay the tax arises. I think there was some confusion about whether liability arises from registration or lia- bilities arise independent of the time of registration.
    He tries to explain that they have gone back to what they call “the charging pro- visions” and that is clause 2 of the original Bill, if that is still valid, if that was what was approved by this House. It states three different categories or situations under which liability will arise. One is in the case of making a supply and the second is in the case of the import of goods.

    The third is the rendering of a service and the receipient of the service. What he is saying may easily apply to (a) and (c). But in the case of (b), the importer of goods-- when we import goods, the price at which one is able to sell it in the market and be competitive is also dependent upon whether the person evaded taxes.

    Therefore, if somebody enjoyed this undue advantage of not paying taxes, when there was an obligation to register and if subsequently discovered, what liability should arise in that case? This is because, for several years, the person imported goods and did not pay duty.

    Therefore, the person becomes more competitive in the market as against other people and if we subsequently, find out what obligation should the person be un- der. That is the concern. But I take on board his explanation regarding conditions under which liability to pay the tax arise.
    Mr First Deputy Speaker 12:05 p.m.
    Hon Deputy Majority Leader and then the Chairman of the Committee.
    Mr Agbesi 12:05 p.m.
    Mr Speaker, the purpose of this Bill is to collect VAT; but if somebody or an entity decides not to register and it is found out, the Commissioner-General must compulso-rily register the person or the entity. Therefore, if there was no col- lection of VAT from him as he failed to do in the past then all entities would decide to evade tax until they are found out.
    So, what is the purpose of this Bill? The purpose is to collect VAT when it is due. When it is due, is the time they are supposed to register. If they fail to register and are found out from that day, the backlog is lost to Government and that should not be the purpose. The purpose is that, when they have not registered, they should be taken into consideration and charged. The Hon Second Deputy Speaker said, when they were supposed
    Mr First Deputy Speaker 12:05 p.m.
    Yes, Hon Chairman, can you address these concerns that have been raised?
    Mr Avedzi 12:05 p.m.
    Thank you.
    Mr Speaker, I would want to take you back to page 3 of the Order Paper, the new clause 7 -- period for becoming a taxable person. A person who is not registered but who is required to apply for registration under this Act is a taxable person from the beginning of the tax period immediately following the tax period in which the duty to apply for registration arose. That alone can solve the problem.
    Mr Joe Ghartey 12:05 p.m.
    Mr Speaker, I am sorry.
    At first glance, it seems to solve the problem but at close scrutiny, perhaps, we need to borrow the words of commu- nicators on radio to interrogate the matter further -- [Laughter].
    Mr Speaker, if we say that for the peri 12:05 p.m.
    None

    Mr Speaker, what is the purpose of the VAT Act? It is to make sure that the person who is registered is collecting tax on behalf of Government -- he is an agent of Government in the case of clause 2 (a) and (c) where he collects the VAT from the person who is supplying the goods or the service. In the case of 2 (b), he himself is paying when he is an importer.
    Mr Avedzi 12:05 p.m.
    Mr Speaker, point of order -- what that importer is paying is the input VAT. So, if it is registered and he sells that product, he also collects VAT; and
    that is the output VAT. There is a differ- ence because what he also collects goes to Government. So, take that on board.
    Mr Ghartey 12:05 p.m.
    So, VAT is not com- plicated. It is one of the systems which Government uses to collect tax and in this case, a person made an agent for the purpose of collecting tax for Government.
    All we are saying is that if we have a situation where a person has collected tax on behalf of Government and he has not fulfilled that obligation because the person did not register, when the person is found out that he was denying Government rev- enue, then he is given a simple tap on the back, that from the date we found out, the next time we will just continue with the person as if nothing happened, and this is a cause for worry.
    There is no sanction against the person who refuses to register when he should have registered. “Clause 7 says that --
    “ A person who is not registered but who is required to apply for regis- tration under this Act is a taxable person from the beginning of the tax period immediately following the tax period in which the duty to apply for registration arose.”
    So, it means that from that period, the person is taxable. What is the sanction against the person?
    Mr First Deputy Speaker 12:05 p.m.
    Hon Second Deputy Speaker, it looks like sanctions have been provided. So, as soon as you fall into that bracket, sanctions will apply.
    Mr Ghartey 12:05 p.m.
    Mr Speaker, I rest my case.
    Prof Gyan-Baffour 12:05 p.m.
    Mr Speaker, if that is the case, why do we not go back and pick the language in clause 7 and replace the discretionary powers given to the Commissioner-General, so that the rendition becomes --
    “where a person required to register under this Act fails to apply for reg- istration, the Commissioner-General
    may register the person…”
    Then we go back to clause 7 and pick the language there, which sates that “from the beginning of the tax period immedi- ately following the tax period in which the duty to apply for registration arose . . .” And that solves the problem otherwise you will give another discretion to him even though the law says exactly what he should do.
    Mr First Deputy Speaker 12:05 p.m.
    Hon Chairman, before you take the floor, let us hear from Dr Osei.
    Dr A. A. Osei 12:05 p.m.
    Mr Speaker, before you make the amendment, if you stop at “may register the person”, then you do not need to bring clause 7 all the way down; then that solves the problem.
    Mr First Deputy Speaker 12:05 p.m.
    Yes, I think so.
    Dr A. A. Osei 12:05 p.m.
    It should be “shall”. Right.
    Mr First Deputy Speaker 12:05 p.m.
    “Shall”. All right.
    Mr Chireh 12:05 p.m.
    Mr Speaker, I beg to
    move, it should be “shall” and it should end with “register the person”.
    Mr First Deputy Speaker 12:05 p.m.
    Hon Chairman, you are in favour of that amendment?
    Mr Avedzi 12:05 p.m.
    Exactly so.
    Question put and amendment agreed to.
    Clause 14 as amended ordered to stand part of the Bill.
    Clause 15 -- Sanctions for failure to register
    Mr Avedzi 12:15 p.m.
    Mr Speaker, I beg to move, clause 6 subclause, (22)
    “A person who fails to apply for a registration is liable to a penalty of not more than two times the amount of tax on taxable supplies payable from the time the person is required to apply for registration until the person files an application for registration with the Commis- sioner-General”.
    Mr Chireh 12:15 p.m.
    Mr Speaker, I would need a little explanation. Is this sanction following clause 14 or it is standing alone? If not, then a problem arises. The sanctions here, are they applying to the clause 14 (1) we failed to do, or they are related? If they are related, then it should actually be clause 14 (1) and (2). In which case, you are saying that if you fail to do so in clause 14 or you do not comply with clause 14, these are the sanctions. Does it have relation with any part of the Bill or it stands on its own?
    Mr Avedzi 12:15 p.m.
    Mr Speaker, the clause 14 is ‘compulsory registration' but this sanction applies to any person who fails to register, therefore, it is standing alone, it does not flow from the clause 14 even though the clause 14 is also couched under that one.
    Question put and amendment agreed to.
    Clause 15 as amended ordered to stand part of the Bill.
    Clause 16 --
    Mr Avedzi 12:15 p.m.
    Mr Speaker, I beg to move, clause 16 (1):
    “An unregistered, non-resident person who provides tele- com- munications services or electron- ic commerce to persons for use or enjoyment in the country, other than through a Value Added Tax registered agent, must register if that person makes taxable supplies exceeding the threshold under sub- sections (1) or (2).
    Mr Avedzi 12:15 p.m.


    (24) For the purposes of subsection (1),

    (a)telecommunication services are services that relate to the trans- mission, emission or reception of signals, writing, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, including the provision of ac- cess, transmission, emission or reception;

    (b) electronic commerce covers business trans-actions that take place through the electronic transmission of data over com- munications networks like the internets;

    (c)supply of telecom-munication services and electronic com- merce” include:

    (i)website supply;

    (ii) web-hosting;

    (iii)distance mainte-nance of program- mes and equip- ment;

    (iv) images, text and infor- ma-tion and making da- ta-bases available;

    (v) music, and games, games of chance and gambling games;

    (vi) political, cultural, artistic, sporting, scientific, and entertainment broad-casts and events; and

    (vii) distance teaching.”
    Dr A. A. Osei 12:15 p.m.
    Mr Speaker, just a slight deletion, the “images, text and infor- mat- ion” is repeated, so, we just have to drop one of them otherwise it is all right. (iv)
    and (v) are the same things, so, we have to drop one.
    Mr First Deputy Speaker 12:15 p.m.
    Very well. I think the point is well taken.
    Mr Ghartey 12:15 p.m.
    Mr Speaker, with respect, the Constitution provides that when you bring a Bill to Parliament, in the Mem- orandum, he or she should give reasons for the change or the defects must be explained. The Memorandum is an explanation of the reasons you have brought this Bill.
    This is a very extensive provision. I was waiting to hear an explanation from the Hon Chairman of the Committee why he is introducing this very extensive clause. But all I heard was the Hon Chairman repeating what is written there.
    Dr A. A.Osei 12:15 p.m.
    It is in the Bill itself.
    Mr Ghartey 12:15 p.m.
    It is in the Bill itself. But please, since you are asking us to agree, if you could please refer us to the Memoran-
    dum or tell us why you think we should agree with you, it would be easier for us to appreciate.
    Mr First Deputy Speaker 12:15 p.m.
    Hon Chairman, can you respond?
    Mr Avedzi 12:15 p.m.
    Mr Speaker, I will im- plore the entire House, especially the Hon Second Deputy Speaker to agree with me because we need to broaden the tax base in order to bring in more revenue to Government.
    Mr Chireh 12:15 p.m.
    Mr Speaker, it looks like the Second Deputy Speaker is happy with the explanation. But I would want an as- surance that with the extensive legislation we have made about telecommunication, there would not be any conflict; and it would be tidied up in conformity. If it is in conformity, then that is why it is extensive.
    Mr Speaker, I was addressing the Hon Second Deputy Speaker indirectly. [Laughter.] Once we have this extensive legislation on communication, it means that any time we are writing another law, we need to take into account what has already been passed to cover the ground. If we do not do so, there may be conflicts in the interpretation. I think that is the reason it is so extensive.
    Prof. Gyan Baffour 12:15 p.m.
    Mr Speaker, I am wondering why the Hon Chairman of the Committee chooses to bring this (2) here instead of keeping it under inter- pretation. Is it giving the impression that tele-communication services elsewhere are different from the one that relates to this subsection one? Why was it not in the interpretation but here? Just some clarification on that.
    Mr Avedzi 12:15 p.m.
    Mr Speaker, we were told at the Committee meeting that, when one is using a word which has some specific
    meaning in relation to the Bill that you are passing, it is better to bring it to the body of the Bill than to put it under the Interpretation section.
    We tried as much as possible to make it agree with the definition given to the telecommunication service under the Communication Service Tax Act, which we passed. So, we thought of bringing it here in the body of the law to make it clearer and user friendly.
    Mr Kwabena O. Darko-Mensah 12:15 p.m.
    Mr Speaker, I would want the Hon Chairman of the Committee to explain some of these things clearly to us. This is because, if somebody is hosting his pages in the United Kingdom (UK), how are we going to collect the tax in Ghana even though the website might belong to a company in Ghana? I would want him to explain it properly. If somebody is buying some- thing online, how are we going to collect the tax?
    Mr First Deputy Speaker 12:15 p.m.
    Hon Chairman, I hope you are listening to the intervention so that you can respond. Please, start afresh.
    Mr Darko-Mensah 12:15 p.m.
    What I am say- ing is that, on the issue of the electronic commerce, if somebody is hosting a web- site in UK, how are you going to collect the VAT in Ghana? If somebody is buying something online, how are you going to collect the VAT and in Ghana? So, we need to be clear; we not just put in the law because we can say -- then what are the implications for double taxation? We have to also look at these issues.
    Mr Avedzi 12:25 p.m.
    Mr Speaker, I referred the Hon Member to clause 16(1) that this must be done through a VAT registered person who is registered here in Ghana. If one does not do it and there is evidence
    Mr Darko-Mensah 12:25 p.m.
    Mr Speaker, websites are just created and this is for non-residents. Websites are just created, for example, just in the United Kingdom (UK); and Ghanaians are buying into the service. How does he expect the UK company to come and register with a VAT registered agent when he does not know anybody here?
    I would want to know how we are going to collect it. If it is a Ghanaian company with these services, then we would know the company is here and we can collect our money but this is for non-resident people.
    Mr Avedzi 12:25 p.m.
    Mr Speaker, let me read the 16(1).
    Mr Ayariga 12:25 p.m.
    — rose —
    Mr First Deputy Speaker 12:25 p.m.
    Are you on a point of order?
    Mr Ayariga 12:25 p.m.
    Mr Speaker, just to under- stand the Hon Member, he has given us a scenario where a company in the United States of America (USA) sets up a website for a company in Ghana. The challenge is, how do we get our tax? But the service is being rendered by the company in the US. If the service is being rendered by the com- pany in the US to a company in Ghana, I do not know whether we would be able to take VAT from a service rendered by a company outside. I do not know if there is some other tax that we can take for a service rendered outside our jurisdiction but being enjoyed here.
    Mr First Deputy Speaker 12:25 p.m.
    Hon Chairman, do you have a response to the issue raised?
    MrAvedzi 12:25 p.m.
    Mr Speaker, I was going to read clause 16 (1) that can make it a bit clearer.
    “An unregistered, non-resident person who provides telecom- munications services or electronic commerce to persons for use or enjoyment in the country, other than through a Value Added Tax registered agent.”
    Which means that, if you are providing that service, you must do it through a VAT registered person here in Ghana because the use of that is in the country. If you are not doing that, you must register. If you are making a taxable supply which is ex- ceeding the threshold -- That is it. Once you are doing it through a VAT registered agent in Ghana, you are not supposed to register because that person you are rout- ing your services through is a registered person, therefore, the appropriate charges would be made by that agent.
    But if you are not doing it through that person and your threshold exceeds what is provided in subsections (1) and (2) of Sec- tion 6, you would have to register before you are allowed to operate the service in Ghana. The Commissioner- General has a system to monitor that.
    Mr First Deputy Speaker 12:25 p.m.
    All right.
    Hon Member for Takoradi, you have heard his response? Are you satisfied?
    Mr Darko-Mensah 12:25 p.m.
    Mr Speaker, no, please.
    Let us even take the telecommunication companies that take traffic from outside and bring it into the country. Does it mean that these companies outside, providing
    traffic to MTN or VODAFONE, have to pay VAT to Ghana Revenue Authority and how do we collect that money?
    Mr Avedzi 12:25 p.m.
    Mr Speaker, they are do- ing it through a VAT registered company agent which is VODAFONE or MTN; so, they are not supposed to register. That is it.
    Mr Darko-Mensah 12:25 p.m.
    Mr Speaker, al- right. What about a situation where you go to Yahoo website to create a website? How are you going to collect our VAT from Yahoo, because they are providing services to Ghanaians who are creating websites outside the country?
    Mr Avedzi 12:25 p.m.
    Mr Speaker, are you cre- ating a website out of Yahoo or you are just getting their service like Yahoo.com, your email address? That one is not what we are talking about, please.
    Mr Darko-Mensah 12:25 p.m.
    Maybe you are not understanding me. If a company out- side the country is creating a service for a company here in this country, how are we going to collect our VAT? In the first scenario, that company is not supposed to pay any VAT.
    Mr Avedzi 12:25 p.m.
    Mr Speaker, the Yahoo services that we all enjoy? Do we?
    Mr Darko-Mensah 12:25 p.m.
    Mr Speaker, there are other services like website creation, for that one, you pay.
    Mr Avedzi 12:25 p.m.
    Mr Speaker, if you are providing the website and you pay, that is what we are talking about. If they provide the websites or a company is providing you a wireless internet service at your home and that company is not a VAT reg- istered company here in Ghana, and it is doing that through a VAT registered agent in Ghana, there is no problem with that.
    If it is not registered in Ghana but the threshold of that company exceeds the amount stated in subsections (1) and (2), there is a system to track you and make sure that you register before the service is allowed.
    Mr First Deputy Speaker 12:25 p.m.
    Hon Min- ister for Finance, can we hear from you?
    Mr Seth Terkpeh 12:25 p.m.
    Mr Speaker, ad- mittedly, the area being discussed is one of the most difficult things, when it comes to the imposition of VAT. It is the reason when it comes to the supply of services, the rules often change.
    Mr Speaker, when we get to section 22, ‘Place of supply', some of these questions are answered there. For example, section 22(4) with respect to ‘Place of supply' states that:
    “The supply of the following servic- es takes place where the recipient uses the service inclu- ding”
    and under
    “(c) the processing of data or supplying information, or any similar service;
    (d) an advertising service,”
    and there are further explanations. So, the law and the regulations tend to
    take care of these peculiar situation that Hon Members are discussing. We would have to follow up with regulations and the communications authorities would have to come in with respect to the hosting of websites.
    In the European Union, for example, where they face this difficulty, they make it compulsory for Yahoo, irrespective of where they supply the service to register within the country. In the absence of an agent who is superintending over their activities, this is indeed, a complex area where even the Commissioner-General would have to issue further administrative
    Mr Seth Terkpeh 12:25 p.m.


    directives.

    It also explains why in answering your first question, we have gone as far as outlining the areas of communications service for the avoidance of doubt. But as technology evolves, it becomes even more complex and I do admit to the Sec- ond Deputy Speaker that this is one area where we could have gone a bit more. In detail, it is one of the areas where we have expanded on the Bill in relation to the previous Act.

    You would agree with me that tele- communication is growing very fast. Just before I sit, for those who may be fol- lowing, there has been a period since the 1980s where the US, for example, exempts these activities for obvious reasons. This is because most of the website companies come from there and it is an issue between the European Union (EU), US and others.

    We may want to take a position even to the extent that when the VAT Protocol under ECOWAS is introduced, we can have a common regime.
    Mr First Deputy Speaker 12:35 p.m.
    Well, thank you very much for the explanation.
    Hon Member, are you alright with it? I think that --
    An Hon Member 12:35 p.m.
    If there is a dif- ficulty, I think they can work on it; so I am all right.
    Mr First Deputy Speaker 12:35 p.m.
    Thank you very much.
    Mr Ghartey 12:35 p.m.
    Mr Speaker, I think he would also consider, maybe, not at this time, about the possibility of having somebody incorporate in-house -- I am doing business internationally as you were saying. Like in the European Union (EU) situation, they compel some of them to localise their business, sort of incorporate
    in-house, which has several implications.
    It may be possible for us to innovate and look at the possibility of having people who are simply agents. So, I can incorpo- rate the company and I am an agent. I can advertise my services as an agent for some of these external companies simply for the purpose of handling their VAT activity.
    That is because the agent that you talked about in the law just now is a person who is actually involved in the business transaction with the other persons. So, I am a VAT registered agent if I am col- lecting VAT on behalf of Government as a result of my business activity.
    I am talking about an agent who is sim- ply an agent and he is acting for a principal outside the country but that would be for another discussion. Perhaps, we should consider that rather than to force people who want to do business with us to come and register companies or incorporate companies in Ghana because that has a lot of implications for them.
    Mr First Deputy Speaker 12:35 p.m.
    Right, thank you very much.
    Question put and amendment agreed to.
    Mr Speaker 12:35 p.m.
    Hon Members, we would move on.
    Would the Second Deputy Speaker get ready to take over the Chair?
    Yes, Hon Chairman of the Finance Committee?
    Dr A. A. Osei 12:35 p.m.
    Mr Speaker, I think there is a general agreement that the Fi-
    nance Committee must meet on another matter. So, we were going to stop at this point, recommend adjournment and to proceed further on this. That was the general agreement; so, I do not know why we have to Sit.
    Today is Friday also and some other
    Members who are not members of the Finance Committee may need to move.
    Mr First Deputy Speaker 12:35 p.m.
    Very well. If that is the consensus, can we hear from the Deputy Majority Leader?
    Mr Agbesi 12:35 p.m.
    Mr Speaker, that is the con- sensus. We are informed that the Finance Committee has a meeting. Also, today is a Friday and some Hon Members would go to the mosque.
    Mr Baffour Awuah 12:35 p.m.
    Mr Speaker, I think we cannot proceed because of the position of the Mace. We may have to --
    Mace Straightened.
    Dr A. A. Osei 12:35 p.m.
    Mr Speaker, I do not know if you said that is the end of the Consideration Stage; you did not say it and he has changed it. The Speaker has not directed, so, how can he just come and change it? [Interruption] --
    No! When did he direct?
    Mr First Deputy Speaker 12:35 p.m.
    I have directed.
    Dr A. A. Osei 12:35 p.m.
    All right -- [Laughter.]
    Mr First Deputy Speaker 12:35 p.m.
    Yes, any seconder?
    Mr Awuah 12:35 p.m.
    Mr Speaker, I thought he was now going to move for the ad- journment, following the repositioning
    of the Mace?
    Mr Alfred K. Agbesi 12:35 p.m.
    Mr Speaker, I do not know why my Colleagues -- But Mr Speaker, today, the Finance Committee is scheduled to meet after adjournment and some of us are going to the mosque; I beg to move, that the House do adjourn till Tuesday at 10.00 o'clock in the forenoon, with the reminder to Hon Members that Monday is a special pre-budget workshop and we must all attend. This is because the Finance Minister would be here to give us details of the pre-budget workshop.
    Mr Speaker, those who would want to come in suit could do so; and those who would want to come should decently be dressed; that is what we are asking for.
    Mr Speaker, I thank you.
    Mr Ignatius Baffour Awuah 12:35 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    ADJOURNMENT 12:35 p.m.
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