Sese power project granted tax breaks
Friday, April 28, 2017
The Sese power plant will export power to Zambia
ASX-listed coal and energy junior, African Energy on Wednesday announced that the Ministry of Finance and Economic Development has approved the Sese Joint Venture’s (JV) application for a Manufacturing Development Approval Order (DAO) for the proposed 450 MW Sese power station.
“Sese Power, the JV entity responsible for power generation, has been granted a five year tax holiday from its first year of commercial operation and thereafter a preferential 15% company tax rate,” the company said.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...