Reorganisation and Develop- ment,
iii. request for waiver of Import Duties, Import VAT, GETFund Levy, NHIL Levy, ECOWAS Levy, EXIM Levy, Special Import Levy, AU Levy and other taxes amounting to eight hundred and forty-one thousand, six hundred and forty-five Ghana cedis twenty pesewas (GH¢841,645.20) on weapons donated to the Ghana Immigration Service, and
iv. request for waiver of Import Duties, Import VAT, GETFund Levy, NHIL Levy, ECOWAS Levy, EXIM Levy, Special Import Levy, AU Levy and other taxes amounting to twenty- ;five million, one hundred .and forty-four thousand, nine hundred and eighty- nine Ghana cedis twenty- seven pesewas (GH¢25, 144,989.27) on vehicles to be procured for the Intercity STC Company Limited.
These Reports were presented to the House on Wednesday, 19th
February, 2020 by the Hon Deputy Minister for Finance, Mrs Abena Osei-Asare on behalf of the Minster for Finance.
The Rt Hon Speaker referred the requests to the Finance Committee for consideration and report.
The Committee met with Hon Daniel Botwe, Minister for Regional Reorganisation and Development, Hon Ambrose Dery, Minister for the Interior, a Deputy Minister for Finance, Hon Kwaku Agyeman Kwarteng, a Deputy Minister for Transport, Hon Daniel Nii Kwartei Titus-Glover, and officials from the Ministry of Finance, the Ministry of Regional Reorganisation und Development, the Ministry of Transport, the Ministry of the Interior, Intercity STC, Metro Mass Transport Limited (MMTL), Ghana Revenue Authority and Ghana Immigration Service to consider the request.
3.0 Background
3.1 Metro Mass Transit Limited
(MMTL)
The establishment of Metro Mass Transit Limited (MMTL) is to share a common goal of ensuring that public transport is accessible to all. In pursuance of this goal, MMTL provides social transport services to both rural and urban dwellers at
moderate fares. The company has been recognised as the only public transport service provider in many remote parts of the country. The MMTL, besides its strategic role in job creation and linking rural areas to urban centers, it also provides discounted bus fares for Ghanaians above the age of 65 and offer free bus services for school children.
The MMTL at its peak of operations had a fleet size of approximately 1,300 buses, operating at an average of 7 27 buses daily on 390 routes thus providing direct employment for over 4,000 people. The 390 routes covered main service Intra- city service routes, rural-urban services routes and intercity service routes.
Over the years, the company's fleet has been dwindling. The buses have reached their useful life, some are as old as 17years. This led to the breakdown of more than 70 per cent of the buses leading to a decline in its operations. In recent times, the company has suspended most operations due to lack of buses to sustain the operations.
An investigation into the operations of the company at its Tarkwa, Tamale
and Kumasi depots by the National Security in June 2019, indicated that the company does not have buses to meet the high demand, leading to agitation against the Government for perceived inaction on its campaign promises.
It was therefore necessary that the MMTL is assisted to acquire more buses to augment their fleet and also consolidate their operations. Assistance to the Company would enable them to continue to provide reliable and affordable public transport services, especially to the rural-urban population.
Pursuant to this objective, the Ministry of Transport made a request to the Ministry of Finance for approval to procure 100 buses to revamp MMTL's operations. The Ministry of Finance granted approval for 50 buses. These buses have since been supplied and deployed into service on various routes throughout the country.
Following from above, the Ministry received another approval from the Ministry of Finance to procure 50 additional buses. The additional 50 buses arrived at the Tema Port on 15th November, 2019.
The estimated duty payable on the buses is fourteen million, seven hundred and eighty-five thousand, six hundred and .fifty-eight Ghana cedis seventy-seven pesewas
(GH¢14,785,658.77).
3.2 Ministry of Regional Reorga- nisation and Development
The Ministry of Regional Reorganisation and Development's objective is to strengthen the coordinating and administrative functions of the regions in the country. Its goal is to enhance access to Government services through reorganisation and the development of administrative regions.
The core functions of the Ministry are to:
Facilitate the formulation of policies for the reorganisation and development of admini- strative regions;
Facilitate the development of strategic plans and programme based budgets for the reorganisation and development of administrative regions;
Facilitate the development of communication/advocacy
strategies to sensitise stake- holders on the modalities involved in the reorganisation of administrative regions;
Collaborate with relevant Ministries, Departments and Agencies for the reorganisation and the development of new regions; and
Facilitate the design and preparation of programmes and projects for the development of the newly created administrative regions.
In December 2018, six new regions were created to help accelerate development in all parts of the country. As part of efforts to retool and enhance efficient and effective workings of the new regions, the Ministry is procuring vehicles for the newly created regions. The total tax liability computed by the Ghana Revenue Authority amounted to GH¢708,652.92 on the consignment.
In order to clear the vehicles from the port, there is the need to waive taxes and duties applicable. It is in this regard that the request for the waiver of taxes and duties for the Ministry of Regional Reorganisation and Deve- lopment have been submitted to Parliament in accordance with article 174 of the 1992 Constitution of Ghana.