The parliament’s majority has raised doubts about the reasons behind the opposition from the minority regarding tax waiver requests for 42 companies under the 1D1F policy.
These waivers, totaling $350 million, have been pending in parliament for years due to strong opposition from the NDC minority.
The NDC MPs, led by Dr. Cassiel Ato Forson, argue that granting such exemptions is not feasible given the country’s economic crisis, which has led the government to seek IMF assistance.
However, during a media address in parliament, majority leader Alexander Kwamena Afenyo-Markin pointed out exemptions granted during the Mahama administration, when Dr. Forson served as deputy finance minister.
The Effutu MP highlighted the over $800 million waiver given to Meridian Port Services (MPS) in 2016 by the Mahama-led administration, citing numerous other waivers granted by former President Mahama without parliamentary approval.
He criticized what he called the “outrageous tax giveaway,” emphasizing that for every $1 invested by MPS, the government gave them 55 cents in tax waivers.
Specifically, MPS was exempted from corporate income tax for ten years, with reduced corporate tax of 15% for an additional five years after that.
They were also exempt from taxes on dividends to shareholders for 20 years, along with concessions on Value Added Taxes, NHIL, customs duties, and withholding taxes.
The majority leader further mentioned beneficiaries of unconstitutional tax waivers, including Dzata Cement, and criticized the designation of some companies as strategic investors by GIPC, leading to tax waivers without parliamentary approval, which he deemed unconstitutional, illegal, and unethical.
President Mahama singlehandedly sat in his office and approved tax waivers in 2015 for the so-called strategic investors. Conspicuous on the list of beneficiaries were:
Dream Reality Ltd
Dzata Cement
Shop rite Ghana
Ecobank
Garden City Mall
Ghacem Ltd
Vincien Sugar Refinery Ghana Ltd
Boston Investments LTD
Dream Realty Ltd
Ciments De L’Afrique Ghana Ltd.”
The others are:
“Wilmar Africa Ltd.
West Hills Mall Ltd.
Tang Palace Hotel Ltd.
Mabani Seven Company Ltd.
Sunon Asogli Power Ltd.
Quantum Power Ghana Gas Ltd.” He revealed.
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