House Grants Fouani Brothers Corporation 7-Yr Tax Break

10
1719
The seven-year's tax break in favor of Fouani Brothers Incorporated was unanimously approved by members of the House of Representatives on Thursday, July 16, 2020.

Senate yet to concur

The House of Representatives has approved an Investment Incentive Agreement (tax break) for the Fouani Brothers Corporation to Construct and operate a Crude Oil Palm Refinery in Liberia.

The seven-year’s tax break was unanimously approved by members of the House of Representatives on Thursday, July 16, 2020.

Plenary took the decision based on a recommendation by its Specialized Committee headed by Unity Party (UP) Rep. Richard Koon (District #11, Montserrado County).

It may be recalled, on Tuesday, July 14, House Speaker Bhofal Chambers, as mandated by Plenary,  set up a specialized committee comprising representation of the 15 counties to scrutinize the Investment Incentive Act submitted by President George Weah in favor of Fouani Brothers Corporation to construct the refinery.

According to the Specialized Committee, the refinery will be a US$30 million investment that will add value to crude oil palm produced in Liberia by producing refined edible vegetable oils, margarine, and other processed food products, glycerin and soap noodles; all of which that are currently imported.

In addition, the the refinery, as per the agreement, will process 13,000 metric tons of crude palm oil per month for the production of edible vegetable and the derivatives from such oil, adding it will be enough for export to the Mano River Union and other neighboring countries and create employment.

“The Lack of skills by the youthful population to enable it fit the job market is one of the main factors responsible for unemployment. The committee sees the Fouani Brothers Corporation Investment Incentive Agreement as an opportunity to addressing the high unemployment rate in the country,” an excerpt of the report said.

In addition, the committee notes that within five years, the investor shall ensure employment of at least 25 Liberian nationals in technical and other skilled or professional positions in the refinery. And not later than its 10th anniversary, the investor shall ensure the employment of not less than 50 Liberian nationals in technical and other financial, administrative and supervisory positions.

The committee reduced the proposed 15 years tax break by the President to seven, which the House acted upon.

Meanwhile, the Investment Incentive has been forwarded to the Senate for concurrence.

Author

  • I am a Liberian journalist, born November 7 and hailed from the Southeast and of the kru tribe. I began contributing to the Daily Observer 2008 and was fully employed in 2012. I am the 3rd of eight children and named after my great grandfather. Am happily married with three children (girls). I am a full member of the Press Union of Liberia (PUL) and also the Sports Writers Association of Liberia (SWAL) and the Legislative Press Pool (LEGISPOL). I can be contacted through email: [email protected] or cell number/WhatsApp: (+231) 0886585875 or Facebook.

10 COMMENTS

  1. Ok, let’s stop think for a second: Do you think the Fouani Brothers got a 7-year tax privilege WITHOUT any back scratching (quid pro quo)? Boy, if you believe that, I’ve a bridge to sell you!

    Look. Our lawmakers have a history of back-scratching (corruption)! From the Global Witness Bribery Scandal to the Hummingbird Bribery Scandal– it has always been “You scratch my back, I’ll scratch yours”! Fart, let me smell it!” “Money na hand, back na ground!)…So, how can you look at history and trust these cold-water lawmakers??

    They’re corrupt to the core! That is why these people shouldn’t be in the business of granting special privileges to anyone!!

  2. Sell the damn country to Weah’s Lebanese friends and share the profits on the citizens! This is totally ridiculous!!!

  3. This is not about tax break for building and operating the factory as nice as this sounds. That investment also requests that in case they can’t find crude oil palm to refine, they will import from other sources and the imports should be tax free.

    This is scaring because a factory built and not run by local produce will do little to answer the question of unemployment as being portrayed. Worst of all with the tax incentives the investor could source his raw materials from a cheaper source and without paying taxes make millions of dollars without having to encourage local planting and sourcing. The same happened to Buchanan Renewable Energy that was granted similar tax break, they focused most on their importation and doing less about the proposed investment package and when they were question or stopped temporarily, there came the death of BRE. I mean it’s common to understand if you grant me an individual duty free, I could just forget about the whole business proposal and get out there and bring loads of containers in my name and make millions of dollars outside of what i proposed to the government. What more about a whole business entity?

    As entrepreneurs, we look for cheaper or no cost opportunities to make profits so if you grant us these opportunities we exploit them at the detriment of the people. So it is the Government responsibility to protect her people’s interests. I mean why encourage local production of crude oil palm to run the factory when I could just import cheaper ones tax free and make more profits as opposed to the former. This is in contradiction to the presumed intention of this investment. I therefore call on the Liberian senate to extract the tax free incentives on imported crude oil palm to encourage local farmers and local production as this will promote jobs and development.

    • It is not meant as raw palm . But a different kind of oil that comes from the seeds. Goggle and find out. Questions are only asked for learning purposes. And you are right on the money. James Davis could be wrong with his interpretations. The only concern here is the headquarter or office in a country fighting to give the country and its capital a facelift from the civil war to reconstruction. Looking at the headquarter or office, it is fair to conclude about what is being practiced by the company is domestic exploitation. The company has the resources to do better, and it is making money that is being invested in overseas markets. But the story is the same everywhere. Government is carrying out substandard development and services. So everyone is doing the same. When money is being made, and there is no need to develop, it is called domestic exploitation.

    • @PeterNehsahn , I had the same question.

      There is no such thing called ‘Crude Oil Palm’…!

      But there is ‘Crude Palm Oil’ — which is the palm oil that you and I know.

      ###
      The Mr. SmartMan who told you to Google it, should have Googled it before making his comments.

      • The one track mind has a long way to go. By looking up the “crude oil palm” or crude palm oil through Google, one gets the same meaning through correction. The facts or what it is or what it should be will be corrected. If not sure, look it out. Not everything meant to be funny, but everything meant to be educational. There are two types of oils produced, the red one is called the crude palm oil and the other called palm oil or palm kernels oil. If the article made an error between words by switching one for another, and one is not sure, look it out. Guaranteed, it will be corrected. Again, not everything meant to be funny, but everything meant to be educational. It is about correcting what appears to be an error. But if the idea behind this is to show off, that too can be educational.

  4. Though yet to be interrogated, but at least this move is economically viable. The company should now have the required resources to maintain staff, investment to create new jobs and add value substantially to the Liberian economy.

    But please, stop contracting loans to buy food for lazy partisans, the war is over!

  5. 15 Liberian to be employed? Too little for seven years tax break. If what Teahjay said is true, then only their family member will benefit from the employment.

Leave a Reply