Tema, Sep. 11, GNA - Mr Tajudeen A. Sijuade, Vice Chairman of Greenview International Company Limited (GICL), a Nigerian Portland Cement Manufacturing Company in Tema, has refuted media reports that the company had evaded tax.
He explained that in view of the fact that the company had added value to its cement production, the Ministry of Finance and Economic Planning had granted the company a five per cent concessionary import duty on its semi-finished unprocessed bulk cement under Chapter 98 of the Customs Tariff.
Mr Sijuade, who was speaking to journalists at Tema, refuted media report alleging that the company had imported about 265,00 tonnes of finished cement into Ghana, which should have attracted 20 per cent import duty, equivalent to about 6.9 million Ghana cedis, instead of the five per cent import duty paid.
He said the report in which two other cement producing companies, GHACEM and Diamond Cement alleged in a joint petition to the Ministry of Finance and Economic Planning and Ministry of Trade that even though GICL imported finished product, the product was misclassified as raw material using the label: 91' Grey Ordinary Portland Cement" was not true.
Mr Sijuade said it is not true as supposed in the petition that because of the misclassification, government earned only a quarter of the actual duty rate supposed to have accrued from the importation of the finished cement products, in view of the fact that they were admitted by the Customs, Excise and Preventive Services (CEPP) Division of the Ghana Revenue Authority at a concessionary rate of five per cent.
He dismissed claim in the petition that the implication of the payment of concessionary duty rate was that the imported finished bulk cement was being considered as raw material, which was actually not the case.
Mr Sijuade said GICL had satisfied all CEPS requirements and that on February 24, 2010, the company applied for the renewal of the five per cent tax it was enjoying and in response the Ministry of Finance and Economic planning, on July 2 of the same year, wrote to the Commissioner of CEPS, granting the company's request.
He stated that in the letter, the Technical Advisor of the Finance Minister wrote: 93in view of the value addition, I am directed by the Minister to inform you that MOFEP letter dated June 1, 2007 and CEPS letter of June 6, 2007, granting GICL the five per cent concessionary import duty on its semi-finished unprocessed bulk cement under Chapter 98 of the Customs Tariff is still valid."
Mr Sijuade said the letter indicated that: 93It must be noted that the concession granted is not a permit, and therefore cannot be said to have expired as the circumstances and basis under which the five per cent concession was granted, still pertain and have not changed." He said that GICL did not bring clinker to Ghana for ecological reasons since the company was aware that the whole world was working hard to protect the environment.
Mr Sijuade said 93To discharge clinker from the vessel will create a lot of dust that will not only pollute the environment, but it would have a long-term effect on humans and plants and the effect on aquatic life at the Port would be immeasurable." He said the company had decided to join the world to help protect the environment by bringing Grey Portland Cement in bulk to Ghana for bagging.
Mr Sijuade explained that for the Ghana Ports and Harbours Authority (GPHA), to effectively monitor the dust level during discharge operations, GICL had installed a dust monitor at the Port, and another one at the factory to monitor dust level. He said that plans were underway to install a second plant in Takoradi and that discussions with GPHA on land acquisition were on-going.
Mr Sijuade said: 93Once we are able to secure land in Takoradi, the construction of the second bagging plant will commence immediately, and is expected to last for one year from the date of commencement."
He said with the completion of the second bagging plant, GICL's investment, which now stood at 18 million dollars, would increase to 37 million dollars, with the total staff strength for the two plants moving from 330 workers to 650 workers.
Mr James Jeyakumar, Assistant General Manager of the Company, conducted journalists round units of the company to acquaint themselves with it operations, including the Loading Bay and the Generator and Control and Compressor Rooms.
