The Majority Leader and Member of Parliament for Effutu Central Constituency Hon. Alexander Kwamina Afenyo-Markin accused the National Democratic Congress (NDC) of economic sabotage focusing on the perceived detrimental effects of the party’s actions on businesses and the broader economy on taxation.
Hon. Afenyo-Markin has shed light on the pivotal role taxation plays in shaping investment decisions. His observations underscored how tax policies attract foreign direct investment (FDI) and the subsequent impacts on local and international investment dynamics.
“Taxation comes at a cost to any entity that involve investment. If the company is looking for a place to invest, that company has many options. Various countries are in competition for foreign direct investment and other opportunities.”
Hon. Alexander Kwamina Afenyo – Markin the Majority Leader and the Member of Parliament for Effutu Central Constituency
According to Hon. Afenyo Markin, Countries are keenly aware that, tax policies can serve as powerful tools to lure investors. Hon. Afyenyo-Markin noted that, tax waivers are often employed as incentives to create an attractive investment environment.
“These are used as bait… to attract investment so that the company knows that okay if I go to country A, I would have all my capital to invest in my production…If you are investing at a low cost, you can also sell at a very low cost. Right. You can expand because the opportunity is there for you to expand.”
Hon. Alexander Kwamina Afenyo – Markin the Majority Leader and the Member of Parliament for Effutu Central Constituency
This cost-saving effect allows companies to reinvest in their operations and expand, leading to increased employment opportunities and broader economic benefits.
Investment Decisions and Tax Costs
Investors are likely to prefer locations with lower tax burdens. Hon. Afyenyo-Markins illustrated this with a practical example:
“If somebody is bringing $1,000,000 to Ghana and in bringing $1,000,000, he would end up paying a $500,000 tax loan. That person will choose another country where he would have to spend $100,000 in taxation.”
Hon. Alexander Kwamina Afenyo – Markin the Majority Leader and the Member of Parliament for Effutu Central Constituency
This differential in tax liabilities influences investors’ decisions, directing them toward more favorable environments where they can maximize their investments. Hon. Afyenyo-Markin pointed out:
“When people make money as Ghanaians, and they are looking at opportunities, they will prefer that if I would have to pay so much tax and if important raw materials or machinery for my business will cost me so much, why not invest the money in treasury bills?’’
Hon. Alexander Kwamina Afenyo – Markin the Majority Leader and the Member of Parliament for Effutu Central Constituency
To mitigate these challenges, Hon. Afyenyo-Markin emphasized that his government has introduced policies aimed at fostering a conducive business climate. Hon. Afenyo-Markin highlighted the initiative of “1 district, 1 factory,” designed to stimulate economic growth and create a supportive environment for investment.
“This is something that this government wants to discourage. It is the reason why during the campaign, Mr. President said upon assumption of office, he’s going to introduce what we call 1 district, 1 factory.”
Hon. Alexander Kwamina Afenyo – Markin the Majority Leader and the Member of Parliament for Effutu Central Constituency
Meanwhile, Hon. Afenyo-Markin pointed out his dissatisfaction with the NDC’s approach to parliamentary and political matters, particularly regarding their handling of business-related issues. This statement reflects his frustration with the NDC’s focus on partisan interests over national priorities. He noted; “If we are serious about our country, we will stop these trivialities and move away from undue partisanship and look at the national interest.”
A significant part of his critique was directed at the negative consequences of NDC’s political actions on businesses. Hon. Afenyo-Markin criticized the party for allegedly undermining business operations, declaring, “Mr. Speaker, it is unacceptable, we are destroying businesses.”
Hon. Afenyo-Markin warned that such actions harm not only individual businesses but also the economic environment at large. He further cautioned against the misguided belief that destroying businesses could translate into political gains: He emphasized; “If we think that by destroying these businesses, we will come back to power, we will come to power to have a fresh start and reset. I am sorry.”
Emphasizing the need for higher standards of behavior from the NDC, Hon. Afenyo- Markin stated;
“Mr Speaker, I think, that we can do better than this as parliamentarians. We can do better than this as a political class. We can do better than this as people who have been elected to lead our people.”
Hon. Alexander Kwamina Afenyo – Markin the Majority Leader and the Member of Parliament for Effutu Central Constituency
This reflects his view that the NDC’s current approach falls short of the standards expected from elected representatives. Hon. Afenyo-Marin further criticized the NDC for allegedly eroding business confidence.
“Mr. Speaker, we should have our disagreement. but to destroy the business life of people who have entrusted their businesses into our economy, who believe in the policies and say that we are not going to pass.”
Hon. Alexander Kwamina Afenyo – Markin the Majority Leader and the Member of Parliament for Effutu Central Constituency
This statement underscored his belief that the NDC’s actions are undermining the trust of business owners in the economic system.
Rejection of Committee Recommendations
Hon. Afenyo-Markin argued that, the NDC’s rejection of parliamentary committee recommendations, he sees as politically motivated.
“When the committee of parliament has done its work, and the committee of parliament has recommended to the plenary and plenary says, by certain operations of politics, we are not going to take them.”
Hon. Alexander Kwamina Afenyo – Markin the Majority Leader and the Member of Parliament for Effutu Central Constituency
This comment highlights his frustration with what he perceives as the misuse of political influence to disregard substantive recommendations. Hon. Afenyo-Markin further criticized the NDC for continuing to engage in partisan politics even in their closing statements. He noted, “And even in the closing remarks of the minority leader, he still finds faith to do politics with it.”
This reflects his frustration with ongoing partisan behavior from the opposition, despite pressing national issues. Hon. Afenyo-Markin compared the NDC’s actions with his background in law, contrasting them with the expertise of economists and tax experts. He remarked, “Mr. Speaker, I’m not an economist. I did law and if this is coming from an economist and a tax expert, it is very rich, extremely rich.”
This comment underscored his view that the NDC’s actions are particularly surprising and disappointing coming from individuals with specialized knowledge. Hon. Afenyo-Markin’s address provided a comprehensive critique of the NDC’s approach to parliamentary and economic issues.
Hon. Afenyo-Markin raised concerns about the impact of the party’s actions on businesses and the broader economy, as well as a call for more responsible and focused political conduct.
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