35% corporate taxes to be paid by Barari DV in lithium deal must be clear - NDC

The National Democratic Congress has described as a “celebration of mediocrity” the government argument that earning 10 royalties in the Lithium mining deal is in the best interest of the country.

According to the NDC, the fine details of the deal should be specified and remove any chances for speculation and ambiguity.

They explained that the assertion that the Barari DV will pay corporate taxes worth 35% is not conclusive enough.

In a statement, the Communications Officer of the NDC, Sammy Gyamfi noted that “On the claim by the government, that Barari DV will be paying corporate tax of 35% under the deal, it is important for government to clarify the status of the company and provide the full facts relative to concessions that have been granted the company.”

Read parts of the statement below:

“What the Mining Lease expressly provides is that Barari DV shall pay taxes in accordance with the mining laws of Ghana, without more. We are however told that the Company is registered under the Ghana Free Zones Authority and is entitled to a 10-year tax holiday when such tax concessions are ordinarily not granted to mining companies in the country. This if true, will deprive the country of corporate taxes during the first ten years of the Ewoyaa Lithium project. This will effectively limit Ghana’s share to the paltry 10% royalty and marginal benefits from our 13% carried interest and the 6% equity held by the Minerals Income Investment Fund (MIIF).

“It is therefore imperative, for government to clarify the status and tax obligation of Barari DV and its parent company. Ghanaians deserve to know whether or not the company is a free zone company and why a mining company should be accorded free zone status. Ghanaians deserve to know all the concessions government is giving the company (Barari DV/Atlantic Lithium) for a holistic assessment of the benefits of the deal.

“Beyond that, strict provisions on tax compliance and enforcement are required to ensure that the state is not cheated through transfer pricing and creative accounting. It is important to make the point, that government’s boastful claim about securing a 10% Royalty under the deal, is a celebration of mediocrity.”

SSD/NOQ

Watch the latest edition of BizHeadlines below:



Ghana’s leading digital news platform, GhanaWeb, in conjunction with the Korle-Bu Teaching Hospital, is embarking on an aggressive campaign which is geared towards ensuring that parliament passes comprehensive legislation to guide organ harvesting, organ donation, and organ transplantation in the country.

Click here to follow the GhanaWeb Business WhatsApp channel