|Amendments On Duties, Other Taxes Approve|
|Thursday, 23 December 2010 07:53|
The Bill to amend the Custom and Excise (Duties and other Taxes) Act, 1996 (Act 152) was passed yesterday in Parliament; the passage was to impose an environmental excise tax on plastic packing materials.
It will also reduce the rates of ad-valorem excise duty on selected goods and zero rate Light Emitting Diodes (LED) lamps for domestic and public lighting.
Moving the motion in Parliament, the Minister for Finance and Economic Planning, Dr. Kwabena Duffuor said, the amendment is important in finding ways of dealing with especially the disposal of plastic waste and the reduce of ad-valorem rates of duty on some selected goods.
Presenting the report, the Chairman of Finance Committee, Mr. James Klutse Avedzi indicated that the Bill seeks to provide measures to curb environmental degradation caused by the wide spread use of plastic packaging materials.
An environmental excise tax of 20 per cent has being imposed on the polythene bags and other plastic packaging materials to discourage their production and use to help clean up the environment; he however, added that the tax excludes packaging for water and mineral water.
According to Mr. Avedzi, in order to boost local industries and make them more competitive, the ad-valorem rate of duty on all taxable goods are being reduced by 2.5 per cent.
He noted that to reduce smoking, the excise duty on cigarettes and cigars is being raised from 140 percent to 150 percent due to the health hazards of such products.
Mr. Avedzi said, under the current traffic code, energy saving Compact Fluorescent Lamps (CFL) are zero rated for all import taxes, in the bid to promote energy saving and the reduction in power consumption, Lighting Emitting Diodes (LED) lamps for domestic and public lighting.
Contributing to the Bill, the Member of Parliament for Awayaso West Wagoon, Mrs. Frema Opare called on government to find strategic ways in dealing with the country’s environmental problem, rather than imposing taxes on polythene materials which will increase the cost of production and a long way to burden Ghanaians.
She said, the increment of 10 per cent on Tobacco products is in the right direction, since it will prevent health hazards on the citizenry.
Source: ISD (Gilbert Ankrah/Richie Osei)