Ghana has secured savings of more than US$9 million following a renegotiation of the controversial Ghana Revenue Authority (GRA) agreement with Tata Consultancy Services (TCS), Finance Minister Dr. Cassiel Ato Forson has told Parliament.
Presenting the revised deal for approval, the Minister stressed that the renegotiation was necessary not only to correct procedural breaches committed under the previous administration but also to ensure value for money and comply with constitutional requirements.
Dr. Ato Forson disclosed that he instructed the GRA to renegotiate the financial terms of the contract, given that the procurement process had been “truncated” under the previous administration, adding that the renegotiation yielded substantial savings for the State.
“We were able to reduce the cost of software and related items from US$25.3 million to US$20 million, saving US$5.3 million on one line alone. Hardware and related costs were also reduced from US$15 million to US$13.7 million. Overall, everything put together, we saved US$9 million plus.”
Finance Minister Dr. Cassiel Ato Forson
Explaining the origins of the matter, Dr. Ato Forson revealed that on 4 November 2024, the GRA, represented by then Commissioner-General Julie Essiam, signed an addendum with Tata Consultancy Services.
The addendum committed Ghana to granting the foreign firm a 20 percent withholding tax exemption from 1 January 2025 until the end of the contract period. According to him, this exemption was promised without the constitutionally required parliamentary approval under Article 181(5), which governs international business transactions involving the State.
“Mr. Speaker, my principle still holds. My position on tax exemptions is unwavering. Everyone knows my views about tax exemptions. But this is an agreement that was signed by the Ghana Revenue Authority, imposing an obligation on the people of Ghana.
“The GRA is entitled to ensure that the 20 percent withholding tax is given to Tata Consultancy Services.”
Finance Minister Dr. Cassiel Ato Forson
The Minister emphasised that neither he nor the new Commissioner-General of the GRA, Anthony Sarpong, had signed the original contract or the addendum. His appearance before Parliament, he argued, was solely to ensure that the agreement passed through the proper legal channels.
“Mr. Speaker, the former administration did not come to you under Article 181(5) of the Constitution. I am here to make sure that the right thing is done. I am cleaning your mess. That’s what I’m doing”.
Finance Minister Dr. Cassiel Ato Forson
Dr. Ato Forson noted that the Ministry of Finance could not unilaterally approve the tax exemption and was bound by the wording of the addendum, which explicitly required GRA to obtain parliamentary approval. “I’m only doing my work,” he insisted. “I thought my colleague would rather applaud me.”
The Finance Minister explained that the renegotiation was both a corrective measure and a necessity, given the importance of the Integrated Tax Administration System (ITAS) to Ghana’s economic reform agenda.
He disclosed that the International Monetary Fund (IMF) had classified the ITAS implementation as a structural benchmark and later elevated it to a prior action — making it a critical requirement under Ghana’s support programme.
Dr. Ato Forson underscored the transformative potential of the ITAS, describing it as a system that would “provide a 360-degree view of taxpayers’ obligations and interactions to enable risk-based compliance management, timely enforcement, and targeted taxpayer support.”
The platform, he noted, would integrate domestic tax operations with existing customs systems such as ICOMS, and would also link with the Registrar of Companies to reveal beneficial ownership behind all transactions.
He stressed that both the previous administration and the IMF recognised the software as beneficial, and his task was to implement it properly — in a manner that was lawful and financially prudent.
“IMF identified that the software is good. The previous administration took the software, thought it was good. The IMF has confirmed that the software is good, But before I implement it, I have to come and clean everything else that I believe was wrong. That includes seeking parliamentary approval and renegotiating the rate down.”
Finance Minister Dr. Cassiel Ato Forson
Dr. Ato Forson concluded by reaffirming his firm stance on tax exemptions and fiscal discipline: “My position on taxes hasn’t changed, and it will never change.”
Parliament subsequently approved the renegotiated agreement, paving the way for the legal implementation of the ITAS system while securing significant financial savings for the State.
The vote marks a critical step in rectifying the procurement controversies that plagued the original award of the contract during Julie Essiam’s tenure as Commissioner-General.
The renegotiated agreement is expected to support efforts to modernise Ghana’s tax administration, enhance compliance, and restore public confidence in the nation’s revenue mobilisation processes.
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