The tax incentives designed for companies under the One District, One Factory (1D1F) initiative are expected to engender investor confidence, the chairman of Parliament’s Finance Committee Dr. Mark Assibey-Yeboah has said.
According to him, the tax incentives being granted by government will help address the issue of rural urban migration and promote economic activities across the country. It will also create jobs in all 254 districts in the country and increase government revenue as well.
This was contained in a report of the Finance Committee on the request for a waiver of Import Duties, Import VAT/GETFund Levy, Import NHIL, ECOWAS Levy, AU Levy, EXIM Levy on Plant, Machinery and Equipment or parts as well as corporate tax for five years of operation.
Approval of the tax incentives framework is expected to help inform and give confidence to the investor community about efforts being made by government to support the programme.
It will also help businesses to be certain of the tax incentives they are expected to benefit from if they should enrol under the 1D1F programme.
Following approval by Parliament, the report also indicates that the specific requests for tax waivers to individual companies registered under the 1D1F Initiative – accompanied by the relevant tax assessments – will be submitted to Parliament for approval as and when the need arises.
The 1D1F programme has been designed to create massive employment, particularly for the youth in rural and peri-urban communities – thereby improving the standard of living as well as reducing rural-urban migration, adding value to the natural resources of each district, and exploiting the economic potential of each district based on its comparative advantage.
It is also to ensure even and spatial spread of industries, and thus stimulate economic activity and growth in different parts of the country, promote exports and increase foreign exchange earnings to support government’s development agenda, as well as reduce the volume of imports through imports substitution.