Two bills before Parliament

Page 15, Nov 25, 2009
Story: Emmanuel Adu-Gyamerah

A Deputy Minister of Finance and Economic Planning, Mr Fiifi Kwetey, yesterday laid two bills in Parliament, aimed at amending two financial laws to impose taxes on some selected commodities to ensure the accrual of more revenue for the government.
The first one is the Minerals and Mining (Amendment) Bill, 2009, which is to repeal Act 703, 2006 to ensure the collection of a flat rate royalty on minerals and mining commodities.
The second bill laid by the minister is the Customs and Excise (Duties and Other Taxes) (Amendment) (Number 2) Bill, 2009 to restore and rationalise import duty on selected commodities and to move from specific to advalorem excise duty rate.
The bill also seeks to introduce an import levy on textiles, textile articles and poultry products.
If passed, the bill will impose an import levy of one per cent of the Cost Insurance and Freight (CIF) value on textiles, textile articles and two per cent of CIF value on poultry products.
The Custom, Excise (Duties and Other Taxes) (Amendment) Bill seeks to impose 140 per cent of ex-factory price duty on cigarette and cigar, and 170.65 per cent of ex-factory price on snuff and tobacco while beer in bottles and kegs and stout would attract 50 per cent tax.
In the bill, wines are expected to attract 25 per cent of ex-refinery price, mineral waters of all descriptions, 20 per cent, malt drinks, 20 per cent while “Akpeteshie” will attract 20 per cent of ex-refinery price.
Presenting the 2010 Budget Statement and Economic Policy of the government to Parliament last week Wednesday, the Minister of Finance and Economic Planning, Dr Kwabena Duffuor, gave an indication of the re-imposition of taxes removed on some staple food import to cushion the impact of the global food hikes of the 2007-2008.
He said that decision unfortunately opened the flood gate for the dumping of foreign food items in the country.
In the budget, the minister announced the increase in the minimum mineral royalties to six per cent and gave an indication that the government would engage all mining companies to address the issue of dividend payment, exemptions and the whole mining fiscal regime.