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Customs and Excise Amendment
Bill passed, re-exportation of rice ceases
Accra, May 23, Ghanadot/GNA- Dr. Anthony Akoto Osei, Deputy
Minister of Finance, has said rice importing companies would
not be allowed to re-export as the Customs and Excise
(Petroleum Taxes and Petroleum Related Levies) Amendment
Bill became operational.
In a closing remark before Parliament passed the Bill under
a certificate of urgency on Friday, Dr. Osei said the Bill
was rather to encourage the local production of rice even if
in the near future.
The object of the Bill is to ameliorate effects of rising
global commodity prices and its effects on the economy by
removing the import duty on rice, wheat, vegetable oil, and
yellow maize for poultry.
Finance Committee of Parliament has been informed that this
year alone, the price of rice has risen by 70 per cent, and
passage of the Bill is to ensure that the prices of the
selected products do not rise as fast as they are currently.
The Bill also seeks to reduce the petroleum price per litre
of gas oil, kerosene, marine gas oil.
It waives 6.2 pesewas on each litre of gas oil; 4.5 pesewas
on kerosene and 3.9 on marine gas oil.
The introduction of the Bill followed a nationwide broadcast
on Thursday by President John Agyekum Kufuor on Government
measures to mitigate economic hardships as result of high
petroleum prices and increasing food prices.
A Finance Committee Report on the Bill noted speculations as
to the direction of prices after the President’s delivery,
which could lead to chaos in the market, thus creating the
need for Parliament to quickly consider the Bill.
The mitigation measures are to cause the Government a
revenue loss of GH¢ 38 million, but the Committee said
Government is reviewing and reprioritizing the budget of
Government Ministries Departments and Agencies, especially
in their development expenditure.
The Report also stated that Government had made available GH¢
11 million subsidy for the agricultural sector.
Dr Osei said the Government had been in touch with major
importers of rice, monitoring the market and anticipated the
shortage, adding that people had rather been over-valuing
their rice purchases.
He announced that a task force had been charged to continue
monitoring the situation.
The House learned from the Majority side tahat the Aveyime
Rice project had been re-launched to boost the local
production of rice part of measures to boost local food
production.
Mr Edward Doe Adjaho, Deputy Minority Leader, supported the
motion on the Bill, but however described it as ad hoc and
panicky by the ruling New Patriotic Party (NPP).
He said the House was not being told what projects were to
be affected; adding that the House should know what aspect
of the national budgets it was cutting.
“I reluctantly support the Bill,” Mr Adjaho said.
The debate was characterised by a comparison of achievements
of what the ruling NPP had done to mitigate poverty levels
and what the National Democratic Congress (NDC) did to
mitigate economic hardships when it was in power.
Contributors from the NDC were of the view that reducing
import duties on food staples would not necessarily reduce
their prices.
GNA
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