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House Passes Global Pharmaceutical Manufacturing, Laboratories Limited Agreement

by News Manager

MONROVIA: The Plenary of the House of Representatives has overwhelmingly voted for the passage of an investment incentive agreement between the Liberian government and the Global Pharmaceutical Manufacturing and Laboratories Limited.

The House’s Plenary took the decision on Tuesday, December 5, 2023 during the 10th Day Sitting of the 3rd quarter of the 6th Session of the 54th Legislature following a full report from the House’s Committee on Investment and Concession.

As per the mandate of Plenary, the Committee conducted a review of the Agreement and noted the following: that the company is 65 percent Liberian and 35 percent Pakistan in terms of ownership. The Committee also established that the duration of the agreement is 15 years and the corporate income tax is no wavier and a Special incentive deduction – five percent waiver for investment activities, providing at least 200 jobs for Liberians.

Other incentives, according to the committee report, are Import duties on raw materials-waiver, Import duties on spare-parts-fifty percent waiver, Import duties on fuel-five years waiver, ECOWAS trade Levy no waiver.

Others include Withholding tax on interest-waiver for seven years, Withholding tax on dividends-no waiver, Withholding tax on payments for services-waiver for seven years and the GST on finished medical products – fifty percent waiver for five years.
During the agreement review, the Committee found that the Investor will construct, and establish a manufacturing pharmaceutical plant in Liberia that will engage in the manufacturing, processing, and production of pharmaceutical products, and disposable medical supplies.

The construction of this manufacturing plant, as well as a packaging plant in Liberia, according to the report, will have significant benefits to the local economy, including the creation of jobs, helping to curb the high cost of medicines and medical supplies on the Liberian market, and in some instances help to eliminate sub-standard medical supplies and medicines in Liberia.

“Honorable Speaker, Deputy Speaker, Distinguished colleagues, we once again crave your indulgence to approve this report for passage, bearing in mind that this is a Liberian owned company that will help to improve the availability of affordable drugs in our health sector”, the Committee report stated.

Maryland County District #1 Representative P. Mike Jury made a motion to pass the agreement. The instrument has been forwarded to the Senate for concurrence.

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