Majority Leader and Member of Parliament of Effutu Constituency, Hon. Alexander Afenyo-Markin, has expressed his disapproval of the Minority’s decision to boycott Parliament on the day of the One District One Factory (1D1F) tax waiver approval, stating that he takes issue with their actions.
Afenyo-Markin emphasized that in today’s post-COVID era, where countries are vying for investment, tax waivers play a crucial role in enticing investors to choose Ghana.
As such, he argued that the Minority’s excessive focus on the amount, US$ 335 million, is counterproductive and contradicts the purpose of incentives to attract investment and stimulate growth.
“If you talk about the numbers, you’ll oversimplify it and you’ll get it wrong. Countries are competing for investment and they have all manner of incentives to attract people to bring capital. We are talking about post-COVID entrepreneurial decisions… Now, this government introduced the 1D1F, which aims to create the space for businesses to thrive. If you give incentives, that capital is invested in the business”.
Hon. Alexander Afenyo-Markin
Furthermore, the Effutu Legislator emphasized that when businesses are given the freedom to flourish, they gain the capacity to grow, hire more workers, and contribute to reducing unemployment rates.
Accordingly, he highlighted the significance of tax waivers in fostering economic growth, as they enable businesses to invest, expand, and create jobs, ultimately benefiting the economy as a whole.
As such, Hon. Afenyo-Markin dismissed the Minority’s objection to the tax waivers for 42 companies, which was based solely on the amount of money involved, as unfounded and unreasonable.
Moreover, he pointed out that numerous companies, at different stages of development, are facing frustration due to the delay in passing the necessary legislation on taxes, which is preventing them from commencing operations despite having the necessary equipment in place.
Hon. Afenyo-Markin also disclosed that an Indian company, drawn in by the One District One Factory (1D1F) initiative, has invested in his constituency, Effutu, highlighting the success of the program in attracting foreign investment to Ghana.
He noted that the nearly completed company will be manufacturing raw materials essential for cotton production, which are currently imported, thereby reducing the country’s reliance on imports and promoting self-sufficiency.
“I am feeling it because, if this company is completed, they will start employing my people. The companies that are importing [raw materials] will not import so, the pressure on the cedi will go down. And if they have that tax incentive, they will be able to do their phase two and employ more”.
Hon. Alexander Afenyo-Markin
Parliamentary Politicking Hinders Investment Progress
Moreover, Hon. Alexander Afenyo-Markin lamented that it is illogical for senior government officials, including the President and Foreign Minister, to travel abroad to court investors, only for Parliament to create obstacles and politicize the resulting investments, hindering the country’s progress.
As such, Afenyo-Markin appealed to the public to adopt a more expansive perspective when evaluating the 1D1F tax waiver incentive, considering its far-reaching goals and potential impact, rather than narrowly focusing on isolated aspects.
“Look at the space around you, are other countries offering the same incentives? If they do, they [investor] will go. Our colleagues in the Minority know that the 1D1F with its policy incentives is not about giving freebies but as usual, they would want to play politics and that is where I have a problem”.
Hon. Alexander Afenyo-Markin
Furthermore, the Majority Leader disclosed that the Speaker of Parliament has granted the Minority the opportunity to scrutinize the tax waiver proposal during the recess, allowing them to thoroughly examine the individual companies and the allocated waiver amounts, and engage in discussions with the relevant sector Ministry to address their concerns.
As such, the Effutu Lawmaker pointed out that the current NPP government is not inclined to impose taxes unnecessarily, but rather takes a balanced approach, levying taxes when required and offering waivers when circumstances warrant them, demonstrating a flexible and pragmatic stance on taxation.
