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House Considers 17-year Tax Cut Deal for Cement, Steel Factory

first_imgFlashback: Program making official signing ceremony for the Agreement between the Government of Liberia and TIDFORE (Hong Kong) Investment (LICEMCO) for the Establishment of a Steel Plant in Liberia In an endeavor to develop a sustainable economic environment and boost the country’s steel and cement industries, the House of Representatives is investigating a 17-year tax cut proposal from President Ellen Johnson Sirleaf.The tax cut deal is part of an Investment Incentive Agreement with a 17-year agreement term valued at US$200,000. The draft law is entitled: “The Investment Incentive Agreement between the Republic of Liberia and the TIDFORE Investment Company and Liberia Steel and Cement Mining (LICEMCO).”The Joint Committee on Investment and Concession and Lands, Mines and Energy, chaired by Grand Gedeh District #1 Rep. Zoe E. Pennue, is analyzing the Tax Cut Deal and will report to plenary in two weeksAccording to the bill, LICEMCO will develop and operate a steel and cement factory (plant) in accordance with the International Mining Standards & Laws and prudent business practices. In a letter to the House of Representatives, President Sirleaf said the investor under the incentive agreement will completely construct, acquire and install proposed steel plants infrastructure and equipment at the facility (plant).The President also said if the Legislature ratifies the 17-year tax cut proposal of LICEMCO it will “provide for safety procedures, create jobs at all levels, cause the investor to enhance its corporate social responsibilities, generate needed revenue for the country and promote economic development and sustainability.”“This Investment Incentive Agreement is in line with Liberia’s relevant laws and public policy to complement the development plan of the mining and steel sector of Liberia.”The President further said: “As government commits to creating jobs and a sustainable economic environment, the passage of Law of this Investment Incentive Agreement will demonstrate Liberia’s commitment and implementation in that endeavor.”The Joint Committee on Investment and Concession and Lands, Mines and Energy is analyzing the Tax Cut Deal and will report to plenary in two weeks. Grand Gedeh County District #1 Representative Zoe E. Pennue and Nimba County District #9 Representative R. Matenokay Tingban are the chairman and co-chairman of the Joint Committee, respectively.Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window) – Advertisement –last_img read more

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Govt-owned airline will counter monopoly behaviour – CCAC

first_img…says may not be perfect solution, but is a solutionThe Competition and Consumer Affairs Commission recently conducted a study of the airline industry and suggested that a State-sponsored airline be commissioned to end the monopoly-like behaviour over the Georgetown to John F Kennedy (JFK) International Airport route. The CCAC said that the constant stream of players entering and then exiting the market serves as an indication that barriers to entry are not prohibitive. The exit of these firms, it added, places the citizens in a predicament.Outlining the recent history of the airline industry in Guyana, the CCAC said that Dynamic Airways, after a shaky start in 2014, suspended its operations for four months. It returned and started to offer as many as five flights per week and that frequency climbed in the peak seasons. In July 2017, Dynamic Airways announced that it had filed a voluntary Chapter 11 petition with the United States which was likely the result of an unrelated lawsuit.Fly Jamaica started operations in Guyana in 2013. In November 2018, the airline’s fortunes made a sudden change following the emergency landing and crash of its 757 aircraft at Cheddi Jagan International Airport (CJIA). Mechanical problems forced the pilots to head back to Guyana and make the emergency landing. Several passengers were injured during the emergency landing. The airline has exited the market following this incident.One recommendation, it stated, is to temper the monopoly by commissioning “our own State-sponsored airline.”According to CCAC, it may not be the perfect solution, but it is a solution.“The venture may be prone to all the ills of State-sponsored enterprise but if managed properly, we can ensure that there is competitive pressure for the incumbent firms to perform. There is no need to invest heavily in permanent fixtures or to have a permanent presence in the market,” the CCAC stated.Guyana tourism statistical digest for 2016 indicated that for the years 2013, 2014, 2015 and 2016 the number of visitors to Guyana was 200,060, 205,824, 206,819 and 235, 312 respectively.last_img read more