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Parliament yesterday could not approve the request for tax concessions amounting to $982 million in respect of the Tema Port Expansion Project, development of a container terminal and port access road by the Meridian Port Services Limited (MPS).
 
The Minority in Parliament said they needed details of the contractual agreement before giving their approval for concession in respect of Value Added Tax (VAT), National Health Insurance Levy, customs duties, corporate and withholding taxes and other applicable taxes for the projects.

The concession agreement is between the Ghana Ports and Harbours Authority (GPHA) and MPS. Under the agreement, MPS will design, finance, construct and manage the new harbour infrastructure with modern container terminal.

The required exemption includes an exemption from corporate income tax for 10 years after date of first commercial use of facility and a reduced corporate tax of 15 per cent after 10 years for five years and an exemption from tax on dividend for 20 years to both resident and non-resident shareholders.

The Member of Parliament for the Old Tafo Constituency, Dr Anthony Akoto-Osei, led the onslaught for the Minority after the presentation of the report of the Finance Committee on the request for tax concessions for the listed projects by the Chairman of the committee, Mr James Klutse Avedzi.

Dr Akoto-Osei, who is also a member of the Finance Committee, said when the committee met in Koforidua, he and other members of the committee specifically advised GPHA to give details of the contract to the Roads Committee of Parliament.

He said no one was given any design or any estimate on the contract at the meeting.

Dr Akoto-Osei said it was crucial for Parliament to be informed about the designs and estimated cost of the projects.

"If the committee was convinced that it had the information, how come it was not in their report," he asked?

Dr Akoto-Osei said he could not, therefore, support the motion.

Deputy Majority Leader

The Deputy Majority Leader, Mr Alfred Kwame Agbesi, said the report was brought by the Finance Committee for the whole House to consider.

He said since a ranking member of the Finance Committee and other members had some concerns about the report, it would be necessary to step it down.

That, Mr Agbesi said, was to allow the leadership of the House, members of the Finance Committee and the concerned ministry to meet on the matter and reach an agreement and prepare a report which would be acceptable to the House.

Speaker's direction

The First Deputy Speaker of Parliament, Mr Ebo Barton Odro, directed that the motion on the request for the tax concessions be stepped down to allow the leadership of the House, members of the Finance Committee and the concerned ministry to meet on the matter and reach an agreement.

Tax concessions

Presenting the report earlier, Mr Avedzi said the removal of the tax concessions would ensure that the full amount of the credit for the project was available for project execution, to sustain the attractiveness of the project to financiers and ensure that the government did not incur additional cost on the project.