The Minority in Parliament has strongly opposed the government’s plan to grant $350 million in tax exemptions to certain businesses.
Minority leader, Dr. Cassiel Ato Forson, argues that the current economic difficulties in Ghana make these exemptions unjustifiable.
Speaking at an emergency parliamentary session on September 3 at the Accra International Conference Centre, Dr. Forson declared, “We will not accept a giveaway of $350 million to crony businesses in a very opaque and non-transparent manner. Right Honourable Speaker, giving away a tax exemption of $350 million is not an urgent issue that should warrant a recall.”
Dr. Forson highlighted the severe economic challenges faced by Ghanaians, saying, “Ghana’s economy is bleeding, the cost of living continues to be high, and Ghanaians simply cannot make ends meet. These are the bread-and-butter issues that should concern any serious government, not the giveaway of much-needed tax revenues.”
The Majority in Parliament had requested the $350 million tax waiver for 42 companies involved in the government’s One District One Factory (1D1F) initiative. Despite objections from the Minority about potential corruption and misuse of funds, Majority Leader Afenyo-Markin defended the proposal.
In his debate on the State of the Nation Address on March 11, 2024, Afenyo-Markin argued that the tax exemptions are designed to spur economic growth rather than deplete state resources.
“Tax exemptions are used to attract investments, but the NDC is looking at them with a very myopic view. Let me explain that when a government introduces tax exemptions, it aims to drive economic growth, and in effect, these tax exemptions become tax credits. It is not for free, so the NDC should not mislead Ghanaians,” Afenyo-Markin stated.
The Ministry of Finance began seeking about $335 million in tax exemptions for 42 companies under the 1D1F initiative in 2021. The Exemptions Act, 2022 (Act 1083), introduced by former Finance Minister Ken Ofori-Atta, supports this process. Among the companies, Sentuo Oil Refinery Limited has requested the largest exemption amounting to $164,633,012.00.