chambernews

Parliament approves $28 million tax waiver for Kasapreko under 1D-1F programme

Parliament has approved a $28 million tax waiver on machinery, equipment and raw materials for Kasapreko Company Limited under the One District, One Factory Programme.

The gesture is to support the company to expand its operations under the 1D-1F initiative to meet market demand in pursuance of the company’s vision.

Already, Kasapreko Company Limited has acquired and renovated the abandoned Paramount Distilleries factory, previously owned by GIHOC at Tanoso in Kumasi.

The project, estimated to cost some ¢624 million involves debt and equity financing.

The promoters of the business are investing ¢390 million and have secured a loan of ¢234 million from SG-SSB Ghana and Stanbic Bank for the purchase of plants and machinery and it’s related operations for the Kumasi factory.

Touching on the development, Chairman of the Finance Committee, Dr Mark Assibey Yeboah said the approval of the waiver will boost the company’s operations, the local economy and provide job opportunities for Ghanaians.

He noted that the establishment of the factory at Tanoso in Kumasi will provide 300 direct jobs for factory hands, administrative staff, sales executives, and drivers within a five-year period, adding that the company presently employs about 800 direct workers.

Dr Assibey-Yeboah told the House that Kasapreko Company Limited envisage to provide a potential of an estimated 1,800 indirect jobs for distributors, retailers, and small businesses who will sell the products across the country.

These will include food vendors, commercial drivers, rental house owners who will provide services to workers of the company.

Debating the request for approval, MP for Adaklu, Kwame Agbodza commended the government for granting such tax waiver to boost local companies’ capacities to employment more Ghanaians.

He also questioned why government has failed to enact law prohibiting tax waivers to company as announced by the Finance Minister, Ken Ofori-Atta.