The Majority Leader and Member of Parliament for Effutu Constituency, Honorable Alexander Kwamina Afenyo-Markin, has strongly criticized the National Democratic Congress for providing the most outrageous tax waivers in Ghana’s history, while in power.
The Effutu lawmaker, in a scathing critique, highlighted the significant tax exemptions the National Democratic Congress administration under former President John Dramani Mahama granted to Meridian Port Services (MPS) in 2016, which he contended unfairly favoured foreign interests over local businesses.
“At the time, the NDC government applied to Parliament for a tax waiver of USD982M for a project that they claimed cost USD1.5B. It took the intervention of the minority NPP members of the Finance Committee, of which I was a member at the time, to lower the waiver amount to USD832M.
“Even though that was still unacceptable, the NDC majority goaded on by the Terkper-Ato Forson-Mona Quartey Ministry of Finance railroaded the request through Parliament.
Honorable Alexander Kwamina Afenyo-Markin
The Majority Leader further stated that for every USD 1 that Meridian Port Services invested in the project, the Government of Ghana under the erstwhile Mahama’s administration gave them 55 per cent in tax waivers.
He added that Meridian Port Services was granted an exemption from corporate income tax for ten years, a reduced corporate tax rate of 15 per cent for the subsequent five years, and a 20-year exemption from taxes on dividends to shareholders, all under the National Democratic Congress administration led by former President John Dramani Mahama.
According to him, the concessions extended to include exemptions from Value Added Taxes (VAT), National Health Insurance Levy (NHIL), customs duties, and withholding taxes.
Furthermore, the Majority Leader, Honorable Afenyo-Markin alleged that former President John Dramani Mahama unilaterally approved tax waivers in 2015 for several companies designated as strategic investors by the Ghana Investment Promotion Centre (GIPC), bypassing parliamentary scrutiny.
This list according to him included notable names such as Dream Reality Ltd, Dzata Cement, Shoprite Ghana, Ecobank, Garden City Mall, Ghacem Ltd, Vincien Sugar Refinery Ghana Ltd, Boston Investments Ltd, Ciments De L’Afrique Ghana Ltd, Wilmar Africa Ltd, West Hills Mall Ltd, Tang Palace Hotel Ltd, Mabani Seven Company Ltd, Sunon Asogli Power Ltd, and Quantum Power Ghana Gas Ltd.
Honourable Afenyo-Markin strongly asserted that the approvals of such tax waivers under the erstwhile Mahama’s administration were unconstitutional, illegal, and immoral, criticizing the lack of parliamentary oversight and the preferential treatment given to these foreign enterprises.
Indigenous Business Incentives
Contrasting the previous administration’s actions, the Majority Leader, Honorable Afenyo-Markin defended the New Patriotic Party administration’s efforts to support local businesses through the One District, One Factory (1D1F) initiative.
He emphasized that the tax waivers associated with 1D1F companies are limited to five years and were transparently approved by Parliament in May 2019, with aims to foster industrial growth, create jobs, and stimulate economic development across the country.
“The growth seen in the industry sector of the economy is partly attributable to the 1D1F policy, It is creating jobs. It is boosting economic growth. If we did it for a foreign entity, why don’t we extend the same to indigenous businesses that are not benefitting as much as MPS?”
Honorable Alexander Kwamina Afenyo-Markin
In his concluding remarks, Honorable Afenyo-Markin called for a reassessment of tax incentives, urging the government to prioritize Ghanaian businesses.
He emphasized the need for equitable support to ensure that local enterprises can thrive and contribute to the country’s economic prosperity.
Honourable Afenyo-Markin also stressed the urgent need for the government to support Indigenous businesses to create a level playing field with other foreign competitive firms and industries, adding that the same opportunities given to foreign companies should be extended to local entrepreneurs.
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