RESTRICTED
WORLD TRADE G/SCM/Q2/GHA/1
21March 1997
ORGANIZATION(97-1163)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from theEUROPEAN COMMUNITY Regarding theNew
andFullNotification ofGHANA1
Thefollowing communication, dated 12March 1997, hasbeenreceived fromthePermanent
Delegation oftheEuropean Community.
_______________
Ghana submitted on23September 1996 totheWTO thatitmaintained nosubsidies which
require notification pursuant toArticle XVI:1 GATT 1994 andArticle 25oftheWTO Subsidies
Agreement.
Inthisrespect, theEuropean Community hasobtained information ondifferent subsidy schemes
which were notnotified totheWTO although theirnotification appears toberequired pursuant to
Article 25oftheWTO Subsidies Agreement.
SUBSIDY PROGRAMMES NOT NOTIFIED TOTHE WTO
(a) Reduced corporate taxrateforexport income
Thecorporate taxrateinGhana amounts to35%. TheTaxLegislation provides forareduced
corporate taxrateof8%onexport income forcompanies inthenon-traditional export sector.
Thisprogramme seems toconstitute anexport subsidy.
(b) Accelerated depreciation
TheGhana taxlegislation allows accelerated depreciation attherateof50%perannum (for
twoyears) forplant expenditure and20% perannum (forfiveyears) forexpenditure on
buildings. Thisallowance islimited toanumber ofsectors. Mining andcommerce areexcluded
from thisincentive. Thisprogramme appears tobespecific since anumber ofsectors have
beenexcluded.
1G/SCM/N/3/GHA.
./.G/SCM/Q2/GHA/1
Page2
(c) Exemption from income tax
TheGhanaian authorities operate anincome taxexemption scheme ontheprovision of
accommodation foremployees inthetimber andmining sectors.
(d) Export processing zones
Under theFreeZone Act,companies which havebeenauthorized bytheExport FreeZone
Board, areeligible forapackage oftaxincentives. Thefollowing benefits areavailable:
exemption fromtaxes onprofit fortenyears andexemption fromtaxes ofimport intothefree
zonearea.
QUESTIONS FROM THE COMMUNITY
TheCommunity would likethefollowing clarifications regarding these schemes:
- Could Ghana explain whythese programmes were notnotified totheWTO?
- Could Ghana supply anotification under Article 25,using thestandard format?
- Could Ghana clarify whatthecriteria foreligibility are?
- With respect totaxexemption onexport income, could Ghana provide thetimetable
ofhowthese subsidies willbephased out?