Business News of Wednesday, 15 October 1997

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Government Suspends Tax Exemption To Non Governmental Organisations

Tamale,(Northern Region) 14 Oct. The government has suspended tax exemption for goods imported by non-governmental organisations (NGOs). Alhaji Mohammed Mumuni, Minister of Employment and Social Welfare, told NGOs operating in the Northern Region today that consultations are going on how to streamline the procedure and which goods should merit exemptions. It is only parliament that can grant tax exemptions'' adding that ''NGOs with agreements with government for tax exemption will have to get parliamentary approval''. He said the proposed NGOs bill drafted last year to serve as a legal framework to ensure that they act responsibly will have to be revisited. The minister acknowledged that there was not enough consultations on the proposed bill to serve as a legal framework to ensure that they act responsibly. This sent the wrong signals, he said, adding the proposed bill, being revisited, was an attempt to control NGOs. He pointed out that certain ''NGOs are capitalising on the absence of a legal framework to pursue their hidden agenda''. While certain NGOs are political and economic, the activities of others are a fraud on the society, he said. Alhaji Mumuni commended the inter NGO consortium for their role during and after the Northern conflict especially in the areas of reconstruction, rehabilitation and peace. He, however, cautioned them not to compete for glory in the peace overtures and consider their efforts as service to mankind. Alhaji Mumuni described "the peace of the Northern region as fragile'' and appealed to regional NGOs to pursue lasting peace in their programmes. Mr Malex Aalebikiya, chairman of the inter-NGO consortium, appealed to the government to include representatives of NGOs in the drafting of the bill. He called on the government to create an enabling environment for the NGOs to operate effectively.