Accra, July 17 GNA – Parliament has approved a total of $2.068 million tax waiver on machinery, equipment and raw materials to be procured by three companies under the One District One Factory (1D1F) Programme of the Government.
The companies are Accum Energy Ghana Limited, Vester Oil Mills Limited and Ada Premium Diaper Care Limited.
The waiver covers Import Duty, Import NHIL, Import GETFund Levy, Import VAT and EXIM Levy.
Accum Energy Ghana Limited’s benefit amounts to US$1, 208,404; Vester Oil Mills Limited – US$814,874; and Ada Premium Diaper Care Limited -US$44,990.
They will cover machinery, equipment and raw materials to be procured by the three companies respectively.
Dr Mark Assibey-Yeboah, Chairman of the Finance Committee, in presenting the Committee’s Report said Accum Energy was a Ukrainian company that dealt in the production of batteries for cars, trucks, motorcycles and tractors.
It produces more than 300,000 batteries per annum.
The company, which intends to access the African Market, therefore, established a local subsidiary known as Accum Energy Ghana Limited. The local company has the responsibility of producing batteries for the African market.
He said in order to achieve this objective, the parent company had provided Accum Energy with a credit facility of $5.8 million to enable it to procure the needed equipment and machinery to be used for the battery production.
The Company applied for a 1D1F status in order to benefit from the tax incentives and waivers approved for the programme.
Dr Assibey-Yeboah also explained that Vester Oil Mills Limited specialised in the processing of soya beans and peanuts into good quality meal for livestock and poultry using mechanical expellers.
It also manufactured soya oil for consumption, he said.
He said the Company currently supplied its products to the local market as well as some West African countries and Spain.
In order to meet the growing demand, the Company intended to establish a feed mill, which was estimated at US$3.12 million.
He said in order to undertake the project, the Ghana Exim Bank would provide the financing to procure the needed equipment and parts.
The request for the tax waiver was to enable the company to clear the equipment and parts for their operations, he explained.
Dr Assibey-Yeboah also explained that the Ada Premium Diaper Company specialised in the manufacture of diapers and sanitary pads for both domestic and other West African markets.
He said in order to meet its current demand, the Company was undertaking a project to expand its output.
This involved the acquisition of machinery, equipment and raw materials.
The cost of the project is estimated at GHC 9,143,506 – made up of GHC5,393,506 in equity and
GHC3,750,000 as loan.
He said in order to undertake this project, the Company intended to benefit from the incentives under the 1D1F programme to clear its goods at the port.
The implementation of the projects would increase employment, export earnings, the quality of poultry feed and livestock production, he said.
The importation of baby diapers, sanitation pads as well as car batteries would also reduce.
Mr Ras Mubarak, Member of Parliament (MP) for Kumbungu, seconding the motion, said despite the challenges of COVID-19, they provided unique opportunities for the nation to promote companies to do business that they would ultimately provide jobs for the young men and women of the country.
He said the pandemic, however, provided the country with the opportunity to stop capital flight by promoting more local businesses and thus increase export earnings.