Firms to be established under the 1-District-1-Factory initiative will receive a 5 year tax holiday, team leader of the programme at the Ministry of Trade and Industry, Mr. Ernest Agyapong has revealed.
According to him there is a “policy package” which has been sent to parliament for approval.
Even though the package is yet been approved, Mr. Agyapong is optimistic that parliament gives it approval before the end of 2018.
Mr. Agyapong noted that in the policy is a dozen of incentives to be given to all firms both local and foreign.
Aside the 5 years tax holiday, these firms will enjoy a 20% interest rate instead of the current 25% rate.
Again, they will also enjoy free charges on all imported equipment in relation to their industries, and a free guarantee scheme from the government to such companies.
He also indicated that, the collateral requirement from these upcoming companies by financial institutions before they grant them financial assistance will be scrubbed off by the government should parliament approve of the policy package.
Speaking at a policy workshop organized by the Development Policy Research Unit in collaboration with International Institute for Advanced Studies, Mr. Agyapong noted that, the government expects that all 79 companies will be approved by the end of the year.
He reemphasized that, the 1-District-1 Factory initiative was with its own challenges however government was poised to make it real
Story by: Daniel Osei Wereko/universnewsroom.com