GRi Business, Economics & Finance 16 – 04 - 2003

Cocoa farmers to be paid 16,000 cedis bonus per bag

National Reconstruction Levy

Inter-bank exchange rates

Timber export revenue declines

 

 

Cocoa farmers to be paid 16,000 cedis bonus per bag

 

Accra (Greater Accra) 16 April 2003- The Ghana Cocoa Board (Cocobod) on Tuesday said it had made available money to be paid to all Licensed Buying Companies (LBCs) for payment of bonuses to cocoa farmers for the year 2002/2003 main crop season for purchases up to December 31, 2003.

 

A statement signed in Accra by Kwame Sarpong, Chief Executive of the Board, said the bonus per bag is 16,000 cedis and all LBCs should ensure that they pay no less than that amount to the farmer. Cocobod advised cocoa farmers to contact their respective LBCs in their districts for their share of the bonus.

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National Reconstruction Levy

 

Accra (Greater Accra) 16 April 2003- Some industry players have expressed reservations about government's insistence on collecting the National Reconstruction Levy, which, they say, is having a heavy toll on their overall incomes.

 

Officials of a number of banks and manufacturing entities under the Association of Ghana Industries (AGI) and Private Enterprise Foundation (PEF) umbrella have also recently complained about the negative effect of the Levy on their operations, which, they indicated, should be brought to an end quickly.

 

They welcomed the significance and the use of the levy, which is for development purposes saying: "It is important that they are actually used for the purposes for which they were collected."

 

Emmanuel Idun, Finance Director of Unilever Ghana Limited, stopped short of kicking against the Levy but said industry players hoped that its collection would actually end after the renewed three year period.

 

Idun was responding to a question on the Levy at a breakfast meeting with members of the Institute of Financial and Economic Journalists (IFEJ). The meeting was called to discuss the company's operations last year and provide an insight into projections aimed at increasing customer satisfaction in the years ahead.

 

"We are definitely not happy with the continued collection of the Levy anyway and hope that the levy would end in the new three years that the government has stated. Otherwise, it becomes an income tax and must be introduced into the system appropriately."

 

Unilever paid a total of 2.5 billion cedis as National Reconstruction Levy in 2001, increasing to 3.2 billion cedis in 2002. The National Reconstruction Levy was first introduced in government's interim budget of 2001 and was intended to develop a strong base for long-term development finance for the country.

 

Other industry players told the GNA that though the reason for the levy was welcomed its impact had become a difficult thing to bear. "What we do not like is a hidden tax component on production. This is not convenient for our productivity as it goes to affect company profits and our ability to meet targeted projections, not to talk about the impact on consumers," an industrialist said.

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Inter-bank exchange rates

 

Accra (Greater Accra) 16 April 2003

 

Currency                      Buying Selling

                                    Cedis               Cedis

U.S. Dollar                   8,528.73         8,727.64

Pound Sterling              13,381.58        13,698.03

Swiss Franc                  6,118.69          6,259.10

Canadian Dollar            5,856.53          5,991.88

Danish Kroner             1,234.65          1,263.29

Japanese Yen               70.82               72.45

South African Rand      1,091.54          1,112.72

Euro                            9,171.12          9,379.00

CFA Franc                   13.98               14.30

Naira                            68.45               70.04

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Timber export revenue declines

 

Kumasi (Ashanti Region) 16 April 2003- Timber export earnings declined from 45,380,671 Euros in the first quarter of 2002 to 39,625,476 Euros in the first quarter of this year. Total timber export volumes also declined from 110,120 cubic metres in the first quarter of 2002 to 105,075 cubic metres in the first quarter of this year.

 

The figures represented a decrease of 12.68 per cent in value and 4.58 per cent in volume for the two comparative periods. Thomas Broni, Deputy Minister of The Interior, announced these at the opening of a three-day Capacity-Building Workshop on Forestry Laws and Regulations and Export of Wood Products at the Wood Industries Training Centre at Akyawkrom, near Kumasi, on Monday.

 

He said the country could have achieved higher earnings from the export of wood products, if the regulatory agencies had exercised greater vigilance in the performance of their functions. He, therefore, charged the regulatory agencies in the timber export sector to critically examine the statutes and procedures regulating the export trade and develop strategies that would enable the agencies to collaborate effectively and collectively in ensuring that Ghana derived the highest benefits from the sector.

 

Broni, who was until recently a Deputy Minister of Lands and Forestry, urged the participants of the workshop to seriously discuss the issue concerning the management of overland export of wood products to ensue that the country derived maximum returns from wood export.

 

Representatives from Custom, Excise and Preventive Service (CEPS), Ghana Ports and Harbour Authority (GPHA) and Timber Industry Development Division of the Forestry Commission (FC) are attending the workshop.

 

It is aimed at sensitising the key players in the regulation of export of wood products and to discuss issues that would help increase wood export revenue for the country.

 

Kwadwo Wireko-Brobbey, a member of the FC, said CEPS and GPHA as well as the Commission, were equally enjoined by the Constitution of Ghana to protect the country's resources and properties through their procedures on exports.

 

He said the Commission appreciated the part being played by the regulatory agencies in the preventive and protective efforts, adding that, the Commission would continue to sensitise them to improve their efficiency with the view to addressing collectively the issues of meeting the challenges of modern sophistication in export irregularities.

 

Kofi Danquah, Assistant Commissioner of CEPS, said the Service had over the years, performed its duties with thoroughness and diligence. He said CEPS would continue to enforce all laws and regulations that the FC would entrust to it.

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