The Minority has served notice to parliament that it shall resist tax waivers and exemptions for some companies in the country.
According to the group, currently, there are about 45 companies that have been presented to Parliament as one- district-one-factory companies, GIPC strategic investors, among others to be exempted from the payment of taxes.
In total, it revealed that government is asking Parliament to grant tax exemptions to the tune of $449,446,247.95 for these 45 companies, which is the equivalent of over GHC5.5 billion.
The minority indicated that because this is an issue that impacts the economy significantly, it has compiled a full list of all the 45 companies and their respective exemptions being requested.
“We in the Minority are serving notice that we shall resist these tax waiver applications fiercely! In their current forms, we shall resist each and every one of the tax waiver applications with all the tools and strategies at our disposal.”
Minority in parliament
Contained in a statement dated November 27, 2023, signed by the minority leader, Cassiel Ato Forson, it noted that the minority shall give its support to these requests only on condition that any company that seeks tax waiver or exemption shall cede commensurate equity stake in their investment projects or business to the State in accordance with section 14(3) and section 15 of the Exemptions Act, 2022 (Act 1083).
The minority lamented that Ghana’s economy is going through one of the most difficult times in its history, with the “near collapse” of the economy, occasioned by a combination of reckless mismanagement and “crass ineptitude” of the current government.
This, it noted, has compelled Ghanaians to endure a painful domestic debt exchange programme and some of the most stringent austerity measures under an IMF program.
“Our economic woes have been far from over, as we are currently in talks with our external and bilateral creditors, including China, to forgive us or cancel, at least, a part of our national debt. This is a pre-condition to enable us access the second tranche of USD600 million as part of the USD3 billion IMF Extended Credit Facility.”
Minority in parliament
Impact of tax on economy
Furthermore, the minority highlighted that it stands to reason therefore, that now more than ever, Ghana needs all the domestic revenue it can mobilize to prevent the economy from sinking further.
However, it stated that amid all the turbulence the economy is experiencing, people whose actions and inactions have already hurt the economy badly, want to use tax exemption as a new way of enriching themselves further at the expense of the state.
“The reasons for our assertion are not far-fetched. As we speak, most of our traditional creditors who used to lend us money have shut their doors in our face. As a result, Ghana has no borrowed funds with which to give out contracts for projects. This also means that the corruption-induced money that government officials got by inflating contracts and receiving kickbacks is also diminishing.”
Minority in parliament
Subsequently, the minority contended that to satisfy their insatiable greed, people who are used to living on the proceeds of corruption have turned their attention to tax revenue.
It explained that although the suspicion that public officers sometimes accept bribes from private businesses in order to assist them escape taxation is an old one, the escalation in the sheer number of companies being presented to Parliament as candidates for tax exemption under the Akufo-Addo/Bawumia government, is “frightening”.
Moreover, the minority expressed that there are also a total of 118 companies being processed at the Ministry of Trade & Industry, Ministry of Finance and the Ghana Investment Promotion Centre to be brought to Parliament for tax exemptions.
It revealed that the total value of exemptions for these 118 companies is about seven billion Ghana cedis.
“It is the considered view of the Minority that these requests for tax exemptions running into several billions of Cedis, are unconscionable, inordinate and bear all the trappings of organized crime.”
Minority in parliament
Meanwhile, the minority highlighted that the phenomenon of tax exemption as an avenue for “corruption” is a frightening development that threatens the domestic revenue reforms that the state is currently undertaking.
As it stands, the minority emphasized that government is seeking to rake in some GHS11 billion from a plethora of new tax measures it has outlined in the 2024 budget.
The effect of these new taxes, it revealed, will result in the poor becoming poorer, suffocating industry and businesses and further increasing the hardships Ghanaians are already experiencing.
“This government is simply robbing Peter to pay Paul by exacting taxes from Ghanaians, only to dole out huge tax exemptions to their cronies for kickbacks. It is for this reason that we call on all Ghanaians to join us in this fight.”
Minority in parliament
