Government has set aside five billion cedis in this year's budget as seed money in an endowment fund for science and technology research.

This, according to Finance Minister Kwadwo Baah Wiredu, was to encourage basic and applied research in order to generate new pillars of growth for the economy.

"For the purposes of encouraging basic research, government will promote the establishment of an Endowment Fund for Science and Technology Research by providing an initial allocation of ¢5.0 billion," he said.

Mr Baah-Wiredu said the private sector and other institutions would be encouraged to contribute to the Endowment Fund to create a regular flow of resources for basic research. The Council for Scientific and Industrial Research (CSIR) would coordinate the initiative.

"The government encourages the private sector to take advantage of the generous tax incentives already in the Internal Revenue Act to step up their commercialization of research," the minister said.

He cited one such incentive package as the one given to the pharmaceutical manufacturing industries, saying that government had already granted exemptions to 66 active pharmaceutical ingredients.

"To further encourage local pharmaceutical industries to increase the supply of locally produced drugs and support the current National Health Insurance Scheme, it is proposed that VAT and import duties on raw materials and packaging materials used in manufacturing drugs for treatment of HIV/AIDS, Tuberculosis and Malaria be removed," he said.

Source: GNA