The Parliament of Ghana is still pending tax exemptions for 42 selected companies under the One District, One Factory (1D1F) programme, owing to delays by the Parliament’s Finance Committee in completing the scrutiny of these firms.
Mr Alexander Afenyo-Markin, the Majority Leader, has condemned this delay as a deliberate tactic by the Minority to obstruct the government’s initiatives aimed at attracting investment into the nation.
In 2021, the government sought Parliament’s approval for tax exemptions for various businesses involved in the flagship 1D1F industrialization policy, aiming to signal Ghana’s business-friendly environment to the international investor community and boost economic contributions.
However, extensive parliamentary delays, primarily due to demands for additional deliberation and scrutiny by members of the Minority caucus, have hindered the process. Mr Cassiel Ato Forson, a prominent figure in the Minority, strongly opposes advancing the entire list of exemptions from the committee stage, citing irregularities with some listed companies and their requested tax exemption amounts.
Despite proposals to present 15 companies, deemed free of irregularities, to Parliament for approval, the Minority’s rejection has left the Majority Leader visibly frustrated.
The prolonged delay, now in its fourth year, raises concerns about a deliberate effort to impede the government’s agenda, threatening to stifle industrial growth.
These exemptions are intended to reduce operational costs, making it more attractive for businesses to establish and expand their operations. Without these incentives, affected companies may scale back their plans, leading to slower industrialization and fewer job opportunities, undermining the objectives of the 1D1F programme.
Moreover, the ongoing impasse could negatively impact investor confidence in Ghana, as international investors seek stability and predictability in economic policies.
The perception of political gridlock and uncertainty surrounding the tax exemption process may deter potential investors, fearing similar bureaucratic hurdles and a lack of policy consistency in the future. Parliament must leverage its unique numerical composition to foster strong bipartisan relations, creating a stable environment that favors businesses, regardless of the ruling government.
Ensuring the timely approval of these tax exemptions could enhance Ghana’s industrialization efforts and signal to the global investor community the nation’s commitment to creating a conducive business environment.
As the situation evolves, attention remains on whether Parliament can resolve these delays and proceed with the necessary approvals to support the 1D1F programme and the broader economic objectives of the nation.