GRi BEF News 08 – 02 - 2002

Bolgatanga (Upper East) 08 February 2002 - The Upper East Region Export Promotion Council in collaboration with Japan International Co-operation Agency (JICA) is organising basket weavers in Bolgatanga and Bongo Districts for an exhibition on March 9.

The show is aimed at identifying the best weavers and also to help them improve upon their products to meet export requirements. The JICA, the sponsors of the exhibition, would award prizes running into millions of cedis. Prizes include roofing sheets, donkey carts and cash.

The Regional Officer of Export Promotion Council, Ms Maria Mensah said basket exporters have of late faced problems because of poor finishing. "Weavers, in their haste to make money, do not take their time to blend the colours or finish properly. The baskets are, therefore, rejected in the world market."

GRi../

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Tax increases for taxis and trotro

Accra (Greater Accra) 08 February 2002 - The Internal Revenue Service (IRS) has increased weekly income tax rates of five categories of vehicles in the transport sector by about 150 per cent with effect from March 1, 2002.

This is to enable the Service meet its target of 28 billion cedis compared with four billion cedis realised from the transport sector in the recent past when there was no target.

Speaking at a press conference in Accra on Thursday, Mrs Janet Opoku-Acheampong, Commissioner, said the new rates were arrived at with the transport unions made up of the Ghana Private Road Transport Union, Progressive Transport Owners' Association, Greater Accra Co-operative Union and other similar organisations. The old rates were fixed five years ago.

The affected categories are taxis and cars on hire within town and trotros with 19 seats or less which would pay 5,000 cedis instead of 2,000 cedis. Trotros with 20 to 34 seats would pay 7,500 cedis instead of 3,000 cedis, Trotros with 35 seats or more would now pay 10,000 cedis from 4,000 cedis and the light dry cargo for market service, will pay 7,500 cedis from 3,000 cedis.

Mrs Opoku-Acheampong said the increases were not expected to affect transport fares since they were to be borne by transport owners as tax on their profits. The income tax of other categories including the "one pound one pound", the mini buses, long distance passenger buses, long distance cargo trucks and articulated vehicles, wet cargo vehicles including water tankers and tipper trucks would remain at a five per cent per trip.

Explaining the rationale behind the increases, the Mrs Opoku-Acheampong said the transport associations entered into a contractual agreement to collect daily income tax from their members on behalf of the IRS.

The agreement had legal backing drawn in 1987 that enabled both parties to subsequently streamline income tax mobilisation and receipts, categorise the vehicles and revise rates.

"However, as with any human endeavour, there have been some problems...", Mrs Opoku-Acheampong said the problems included the sale of fake receipt books by some unscrupulous members of the transport unions.

She said the members undermined collection of income tax by underwriting of tax paid on the duplicate submitted to the IRS, under-declared tax revenue, embezzled money, charged low rates and made payments without submitting names.

"In the face of all these challenges, one is left with no option but to double one's effort. Consequently, a series of meetings were held between the IRS and the transport owners associations to address the loopholes in the law.

"It was agreed between the two social partners that tax rates for (the) categories be revised upwards." To ensure maximum security and eliminate all fraudulent practices, the Service has come out with new receipt books that bear a monogram and the logo of the coat of arms.

GRi../

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