IRS, CEPS fail to achieve revenue targets - Asaga

Government removes import duty on computers

Vice President of US Boeing Company meets GCAA management.

Privatisation of SIC will put it on sound footing - M.D

Accra (Greater Accra), 5^th November 99

The Internal Revenue Service (IRS) and the Customs, Excise and Preventive Service (CEPS) could not achieve their revenue targets for January to September 1999.

Mr. Moses Asaga, Deputy Minister of Finance said this at a seminar for revenue agencies in Accra on Thursday.

While IRS recorded 663 billion cedis against the revenue target of 735 billion cedis, representing a deviation of 72 billion cedis, CEPS collected revenue of 892 billion cedis, against a 1,016 billion cedis target.

The Deputy Minister said CEPS' performance shows a deviation of 124 billion cedis for the same period.

The seminar was aimed at sharpening the mobilisation skills of revenue agencies and collectors, was under the theme, "Maximising tax revenue: the challenges of the next century."

Mr. Asaga said estimated total revenue and grants for 1999 is 4,112 billion cedis, comprising tax revenue of 3,294 billion cedis and non-tax revenue of 475 billion cedis.

He said the actual tax revenue in 1996 exceeded estimated tax revenue by 32 billion cedis, but in 1997 this fell short by eight billion cedis.

Mr. Asaga said in 1998 there was another shortage of 112 billion cedis in tax collection.

He described the performance as quite encouraging but stated that the shortages in collection in 1997 and 1998 could have been used to finance the construction of a road or health centre in a deprived community.

Tax revenue forms about 85 per cent of total government revenue, the Deputy Minister said, and cautioned that a slack in the performance of any of the tax revenue agencies would seriously disturb the expected growth and development of the country.

He said revenue agencies therefore have a crucial role to play in strengthening the national economy, and called on them to institute measures to ensure efficient tax administration.

Mr. Opoku Boamah, Special Advisor to the Commissioner of CEPS said the enactment of the Ghana Investment Promotion and Export Processing Zone Acts and the Minerals Commission Law has had a positive impact on revenue mobilisation.

He suggested that provisions in the tax laws that have never applied or cannot be applied be revoked.

Tax courts must be established to handle tax cases expeditiously.

Commodore Steve Obimpeh, Chairman of the Parliamentary Committee on Finance asked revenue agencies to plug all loopholes in the sector.

GRi../

Return to top

Accra (Greater Accra) 5 Nov. '99

Mr. John Mahama, Minister of Communications on Thursday said the rate of access to computers in Ghana was still very low although the government has removed import duties on all categories of computers.

He said government is seeking to increase computer penetration by making computers affordable to the ordinary person.

Mr Mahama said this when he launched the Gateway 2000 Personal Computers (PC) onto the Ghanaian market.

The Gateway 2000 is the third largest personal computer supplier in the world with an annual turnover of seven billion dollars.

It is a United States based company concentrating on the design, assembly and direct sale of fully configured and compatible PC system to meet specific needs.

Gateway has markets in Europe, Asia, Middle East and Africa.

The range of products introduced are the Gateway business range computers, which include the E-series range of network ready PCs, the Gateway Advanced Logic Research (ALR) server range and the Gateway Solo range of portable computers, which are all year 2000 compliant.

It would be marketed by Sambus Company Limited, a computer sales and software firm, which deals with remote sensing and geographical information technology equipment's in the Sub-region.

Sambus would also provide after sales services.

Mr. Mahama said the ministry was not happy with the fact that all components of Ghana's computer industry are completely imported.

He said to give meaning to the gateway concept, Ghana's market, which is sizeable, should be able to accommodate a computer manufacturing industry that could export excess products to neighbouring countries.

Mr Mahama said the ministry, through governmental support and donors have embarked on a policy to provide resources to support the building of high-speed connectivity and Internet backbone in all tertiary institutions.

He urged computer sales companies to progressively reduce PC prices to below the 2,000 dollars mark over the next year.

He warned that all computers coming into the country should be Y2K compliant.

Mr Samuel Larbi Darko, Executive Director of Sambus Company Limited, said Ghanaians should endeavour to be computer literate because the country could not afford to be left behind in the global information technology advancement.

GRi../

Return to top

Accra (Greater Accra) 5 Nov. '99

The Vice President of the Boeing Company of United States of America, Mr Wald Braithwaite on Thursday met the management of Ghana Civil Aviation Authority (GCAA) to share ideas and explore areas of collaboration for the future development and growth of the aviation industry.

Boeing, manufacturers of commercial and military aircraft and equipment as well as space and communication gadgets makes an annual turnover of about 58 billion dollars with a work force of about 190,000.

Mr Braithwaite told the GCAA management that Boeing needs to create a market for her services in Africa, especially with Aviation related industry.

Boeing sees the role Ghana is playing in the air transport industry in West Africa as significant and is committed to forge a closer co-operation with her for the benefit of the two side.

He asked the GCAA to also work more closely with the national airline in order to enhance its capacity and efficiency.

The Director of Finance and Administration GCAA, Mr Amos Afful, asked the management of Boeing to support GCAA technically by investing in the numerous development projects that are lined up for the Kotoka International Airport.

Mr Afful, who briefed his guest on Ghana's Vision 2020 policy and the gateway programme also asked Boeing to invest in an aircraft maintenance workshop in Ghana to enable routine checks to be carried out in Accra instead of sending them to Europe for such checks.

Twenty-one Boeing aircraft use GCAA facilities.

GRi../

Return to top

Kumasi (Greater Accra) 5 Nov.'99

Mr Ebenezer Allotey, Managing Director of the State Insurance Company (SIC) of Ghana, on Thursday said the privatisation of the Company would put it on a sound footing to confront the challenges of the next millennium and meet the insurance needs of the people.

The privatisation would bring about an increased capitalisation of the Company to make it more efficient and profitable in the long-term, as the biggest insurer in the country.

Mr Allotey was delivering the keynote address at the opening of a one-day seminar organised by the Company for stakeholders in the timber industry in Kumasi.

The theme for the Seminar was "the benefits of Insurance to the timber industry". It was attended by representatives from the Ghana Timber Millers' Organisation (GTMO), Ghana Timber Association (GTA) and furniture producers.

Topics discussed included "Valuation of Assets for Insurance", "Insurance needs of a Timber firm", "Fire and accident claims settlement procedures" and "Life and Pension schemes for workers in a timber firm".

Mr Allotey said the Company's staff strength had been reduced from 1,100 to 700 at the end of September, under a restructuring exercise, which started at the beginning of the year and expected to continue until 2001.

He explained that the seminar was organised not only because of the relevance of the timber industry to the socio-economic development of the country but also the role of insurance in offering protection to assets of timber firms and security for workers in the industry.

GRi../