Why the mining firm gifting two helicopters to KNUST must pay taxes – GRA Perspective

The Ghana Revenue Authority (GRA) has issued a statement to explain why a mining firm that intends to donate two helicopters to the KNUST must pay taxes before doing so. The statement comes after some public outcry and criticism over the tax demand.

According to the GRA, the mining firm imported the two helicopters in 2020 under the Temporary Admission Regime, which allows goods to be temporarily brought into the country for a specific purpose without the payment of import duties or taxes.

This regime is designed to facilitate international trade and reduce cost.

However, the GRA said that the Temporary Admission Regime also requires that the goods be re-exported within a certain timeframe, usually 90 days or a specific period for activities such as trade shows, exhibitions, repairs, or other temporary uses.

Failure to meet this deadline will result in the payment of the “suspended” import duties and taxes.

The GRA further said that if the mining firm wishes to transfer the ownership of the helicopters to a third party, in this case, KNUST, they are required to pay the appropriate taxes and duties before handing them over to KNUST.

also read: KNUST To Sack Students Who Trail Two Or More Courses After Supplementary Exams (ghanaeducation.org)

This will prevent the possible abuse of the Temporary Admission Regime by importers who apply for the waiver of duties but resort to donating the equipment as scrap as a way of evading payment of taxes⁴.

The GRA also clarified that KNUST has not imported any equipment into the country and therefore is not liable for import duty or taxes.

The GRA also assured that it is committed to supporting government’s agenda of enhancing education at all levels and would do all it can within its mandate to support education.

The statement by the GRA has shed light on the issue and has provided some justification for its decision.

It is important for importers and the general public to comply with the tax laws and procedures to ensure smooth trade facilitation and maximizing revenue for national development.

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