Kasapreko to receive more than $28m tax waiver under 1D1F
Kasapreko Company Limited, a leading Ghanaian total beverage producing company, is to receive the Ghana Cedi equivalent of $28.251 million waiver of duties and taxes on import of machinery, equipment and raw materials for the next five years.
The waiver, described as the largest, under the Government of Ghana’s flagship programme One District One Factory (1D1F) covers waivers of import duty, import National Health Insurance Levy (NHIL), import GETFund levy, import Value Added Tax (VAT) and EXIM levy.
Dr Mark Assibey-Yeboah, Chairman of the Finance Committee of Parliament and MP for New Juaben South, moved for the Report of the Committee on the waiver to be adopted.
It was seconded by Mr Governs Kwame Agbodza, MP for Adaklu, who rather wondered why the tax waiver was being sought in dollars when the cost of the project was in Ghana Cedis.
Presenting the report, Dr Assibey-Yeboah informed the House of the intention of Kasapreko to expand its operations under the 1D1F initiative to meet market demand.
“In pursuance of this vision, the company has acquired and renovated the abandoned Paramount Distilleries factory previously owned by GIHOC at Tanoso in Kumasi,” the report said.
It added: “The operationalization of the factory will enable the company to increase its current production capacity, grow sales and satisfy market demand in the Middle Belt and Northern Sector of the country and in the Export Market with high prospects for growth and profitability.”
Expected benefits to be derived from the project are that it would facilitate the timely delivery of essential beverage products for local consumption and export, boost the local economy and provide job opportunities.
Kasapreko produces carbonated and non-carbonated soft drinks, water, bitters, whisky, gin, liqour, brandy and wine and also engages in general farming activities.
Being a Ghanaian company, the committee noted that most of its profits and resources would be retained in the country to boost the economy, rather than being repatriated if it were a foreign company.
The incentives being approved for the company would also help elevate the company from a Ghanaian giant into a sub-regional giant and leader in the industry.
Mr Kwaku Agyemang Kwarteng, Deputy Finance Minister, winding up, explained that the amount of the waiver was in dollars because it would involve import items, and also for simplicity sake.