Interest to be paid on outstanding VAT returns - Selormey
House congratulates Obasanjo on his inauguration
Ahwoi says some unit committees are not properly constituted
Interest to be paid on outstanding VAT - Selormey
Accra (Greater Accra) 16 June '99
Businesses and organisations that fail to submit the June Value Added Tax (VAT) returns would be made to pay interest on outstanding liabilities, Mr Victor Selormey, a Deputy Minister of Finance has warned.
The interest would be at the prevailing Bank of Ghana discount rate plus one-quarter of that rate for a month on the tax due if it remains unpaid for any part of the month after the date it is payable.
In the mean time the 5,000 cedis daily penalty for each day that VAT returns are not submitted on the due date, would be activated for May returns.
Mr Selormey, was answering an "Urgent Question", in Parliament on Tuesday.
Mr Norbert Garko Awulley, NDC-Builsa South, wanted to know what legal and retrieval measures the Ministry of Finance is taking against companies and organisations that fail to submit their VAT returns monthly as required by law.
Mr Selormey said, using the best information available, the VAT Information Processing System (VIPS) has assessed all businesses, which have so far failed to file returns for any of the four months after deadlines for returns submission.
He said the list is being carefully studied to eliminate cases where genuine cause exists for non-submission, after which assessment notices would be served to defaulting businesses.
The Deputy Minister told the House that before the end of June, late filers of April returns, which became due at the end of May, would also be issued with notices for the lump sum penalty.
Mr Selormey explained that the imposition of pecuniary penalty is not a revenue tool but only a compliance measure to bring up the rate of submission of returns.
He announced that 44.5 million cedis have been received from payment of the penalty imposed for late submission of February returns as at June three.
He noted that the improvement in the rate of submission of returns for the month of March might be partly due to the imposition of penalties.
Mr Selormey said the VAT Act provides for the imposition of one million cedis for a taxable person, who fails to submit returns and/or make payment by the due date.
There is a further penalty of 5,000 cedis for each day that the default continues.
Mr Selormey explained that the restraint and moderation, exercised by the Ministry in enforcing penalties for the first four months of the operation of VAT, was part of the implementation strategy.
They were to afford registered businesses an opportunity to adjust to the new tax system and to induce compliance.
He said the VAT Service is currently in consultation with the Attorney General's Department for commencement of prosecution and other enforcement measures to recover debts.
He warned that the option of seizing assets and properties of recalcitrant defaulters to recover tax due, penalties and interest after the due date would be exercised when other means of recovery do not yield the desired result.
Mr Selormey announced that from a submission rate of 74.4 per cent for the first month of the tax (January, 1999), the rate went up to 75.3 per cent for February and again to 76.3 per cent for March.
Asked if in spite of several cases of non-compliance in the filing of returns, the VAT was doing well, Mr Selormey replied that for the first four months of the implementation of the tax system, 55 billion cedis in revenue was collected, five billions cedis short of projected target.
He attributed the shortfall to sluggishness in economic activities, among other factors during the period, but expressed the hope that when economic activities pick up in the latter part of the year, "we hope to raise more revenue from VAT to meet set target".
The government is expected to raise about 720 billion cedis revenue from the VAT this year.
In an answer to an observation that it takes too long to go through the process of filing VAT returns, a situation, which does not make the new tax system customer-friendly, Mr Selormey said an investigation would be conducted with the view to streamlining and facilitating the process.
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House congratulates Obasanjo on his inauguration
Accra (Greater Accra) 16 June '99
Parliament on Tuesday congratulated General Olusegun Obasanjo on his inauguration as Nigeria's 12th Head of State and third constitutionally elected leader.
Gen Obasanjo, in 1979 made history as the second African Military Leader after the late General Akwasi Amankwaa Afrifa, to hand over power to a civilian regime.
In a statement to Parliament, Mr Hackman Owusu-Agyeman, NPP-New Juaben North, said Gen Obasanjo's return to power through the ballot box is an eloquent testimony to the trust and confidence Nigerians have in him.
It also shows their appreciation of the very good work he did while in office between 1976 and 1979.
The MP indicated that President Obasanjo has assumed office at a very critical period in Nigeria's history with challenges that are truly enormous.
"For the majority of Nigerians, 38 years of independence out of which 29 years have been under military rule, virtually brought Africa's most populous nation to its knees."
Mr Owusu-Agyeman, who is also the Minority Spokesman on Foreign Affairs, noted with dismay that the unity of Nigeria at a point seemed to be under threat as intolerance, inordinate ambition and high level corruption held sway.
He expressed the hope that the inauguration of Gen Obasanjo on Saturday, May 29, would address these and other problems that plague the Nigerian society.
The Minority Spokesman said President Obasanjo deserves the support of the International Community, especially, "we in the sub-region bound together by ECOWAS, as he embarks on the path of national reconciliation, regeneration and reconstruction.
Mr Owusu-Agyeman says as he leads Nigeria on the path of democracy, President Obasanjo should be inspired not only by the massive vote of confidence given him by Nigerians, but "by the prayers of all those of us in the sub-region, Africa and indeed the whole of mankind".
Concluding, the Minority Spokesman said, "we in the New Patriotic Party (NPP) particularly, are most happy that the story of President Obasanjo is yet another vindication of our long cherished ideal of multi-party governance in a liberal democratic environment with the ballot box as the centrepiece".
Nana Akufo Addo, NPP-Abuakwaa, urged African leaders to realise that the democratic system of government is the most ideal one for the continent.
African leaders, he said, should, therefore, take a cue from the Nigerian experience, because authoritarian rulers have woefully failed the continent.
Alhaji Malik Al-Hassan Yakubu, NPP-Yendi commended President Obasanjo for his role in international politics, which, he said, has contributed in no small measure to ensuring peace and stability in most parts of the world.
Mrs. Grace Coleman hoped that with the return to the track of democracy, Nigeria would continue to lead the continent onto the path of democratic rule.
Mr Gabriel Yaw Amoah urged African leaders to emulate President Obasanjo in his initiative at waging war against corruption and strive to uproot this social canker from the society.
Winding up, Mr Kenneth Dzirasah, First Deputy Speaker, who was in the chair, extended Parliament's sincerest wishes to President Obasanjo and the entire people of Nigeria.
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Ahwoi says some unit committees are not properly constituted
Accra (Greater Accra) 16 June '99
Mr Kwamena Ahwoi, Minister of Local Government and Rural Development said on Tuesday that unit committees with less than eight elected members, cannot operate because they are deemed not to be properly constituted.
All the 110 district assemblies have been advised accordingly, he said.
Mr Ahwoi announced that 3,724 out of the 16,000 unit committees in the country are affected and the Electoral Commission is making the necessary arrangements re-run elections in these units after clearing the budgetary implications with the Ministry of Finance.
The Minister was answering a question on whether unit committees with less than the required 10 elected members can operate, and if not so, when would nation-wide elections be conducted to get the full complement of elected unit committee members in the affected units.
Mr Kwakye Addo, NDC-Affram Plains South, posed the question during "Question Time" in Parliament.
Asked how much the Electoral Commission is seeking from the Ministry of Finance to conduct the elections in the affected unit committees, Mr Ahwoi said, "the Electoral Commission deals directly with the Ministry and it will not be possible for me to say".
To a suggestion that development committees should be put in place to fill the vacuum created by affected unit committees, Mr Ahwoi said the Ministry has had such an experience before where such committees had turned out to be the personal property of an assembly member.
"We don't think we want to revisit such an experience".
He disagreed with a suggestion that the 40 per cent voter turn out at the last district assembly elections was low and said the figure is the second highest in the country.
He noted that some people make an unfair comparison between district level elections and general elections and said if there should be any comparison at all, it should be between voter turn out in the current district assembly elections and the previous ones.
Asked whether the Ministry would consider making voting at district level elections compulsory as it obtains in some countries, Mr Ahwoi said: "I am not sure that I am competent to answer this question.
"In any case, we have not, and will not consider compulsory district level elections."
Nana Akomea, NPP-Okaikoi South, wanted to know what criterion is used to select beneficiary communities of the Community Access Improvement Programme and when Bubuashie, in the heart of Accra, would benefit from it and other programmes of urban renewal.
Replying, Mr Ahwoi said he believed the Member was referring to the "Community Up-grading Project", which is a component of the Urban Environmental Sanitation Project of Urban IV Project, supported by the World Bank.
He explained that an urban up-grading study undertaken in 1992, identified communities severely deficient in basic infrastructure services, and these communities were ranked according to the severity of their needs as well as prior demonstration of initiative and cohesiveness.
Mr Ahwoi said 17 prioritised communities in Accra, including Bubuashie, were listed under the 1992 study adding that based on the available World Bank resources, the Accra Metropolitan Assembly (AMA) made the final selection of three communities.
He mentioned the three communities as Old Teshie, West Maamobi and Sukura and said Bubuashie, as well as the 13 other prioritised communities, would be considered when funds being sought by the Ministry becomes available.
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