A heated confrontation erupted in Parliament on Tuesday after Minority Chief Whip Frank Annoh-Dompreh cursed the Finance Minister over a US$10.46 million tax waiver granted to Tata Consultancy Services Limited under the Integrated Tax Administration System (ITAS) project.
The Nsawam-Adoagyiri MP accused Dr. Cassiel Ato Forson of betraying his long-standing opposition to tax exemptions, declaring: “God will judge you.”
Debating the Motion for approval, Annoh-Dompreh said the waiver, which covers 20% Withholding Tax and VAT on imported services, contradicts the governing party’s previous hardline stance on exemptions.
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“Last year, when he was Minority Leader, he spoke passionately against tax waivers, even those under 1D1F meant to create jobs. I don’t know what has changed,” he said.
He noted that the then-Minority rejected more than 47 tax exemption requests under the previous administration, stressing that Dr. Forson’s support for the Tata waiver contradicts the principles he once preached.
“Your world has changed. Therefore, the narrative has also changed… What is special about Tata? God will judge you.”
The Minority Whip argued that the Income Tax Act, 2015 already empowers the GRA Commissioner-General to handle such exemption requests without Parliamentary involvement.
Ato Forson fires back: “I am cleaning your mess”
Finance Minister Dr. Ato Forson, however, rejected accusations of hypocrisy and clarified that the Tata contract and its tax waiver obligations were signed under the previous NPP administration in November 2024 by then-GRA Commissioner-General Julie Essiam.
“This is an agreement signed by the Ghana Revenue Authority of the previous administration, imposing an obligation on the people of Ghana,” he stated.
He explained that the addendum to the contract legally obligated the GRA to secure Parliamentary approval for the exemption. Quoting directly from the document, he said: “GRA shall be responsible and do all such acts required for obtaining such approvals from Parliament of Ghana.”
Dr. Forson emphasised that appearing before Parliament was not optional but a constitutional requirement. “I am here to make sure the right thing is done. I am cleaning your mess.”
Responding to claims that he had abandoned his anti-exemption stance, Dr. Forson insisted: “My principle still holds. My position on tax waiver is unwavering… Everyone knows my views about tax exemptions.” He stressed that he was only fulfilling a legal obligation created before he assumed office.
Dr. Forson revealed that he directed the GRA to renegotiate the ITAS contract after discovering procurement irregularities. This led to significant cost reductions: Software and related items: US$25.3m → US$20m; Hardware and related items: US$15m → US$13.7m and resulting in a total savings of over US$9 million
The Finance Minister defended the implementation of ITAS, calling it a structural benchmark under the IMF programme. He assured it will provide a 360-degree view of taxpayers’ obligations to enable risk-based compliance management and timely enforcement. The system will also integrate with ICUMS and the Registrar of Companies, improving transparency across revenue streams.
The House eventually approved the waiver by Majority decision.
Overview of the ITAS Project
The Integrated Tax Administration System (ITAS) project is a core component of the Ghana Revenue Authority’s (GRA) efforts to modernize tax administration through the use of technology, thereby improving efficiency, broadening the tax base, and increasing revenue collection for national development.
The primary goal of the ITAS project is to create a unified, technology-enabled system for managing various tax processes, replacing older, fragmented legacy systems. This digital transformation effort aims to:
Automate Processes: Digitize and automate tax administration processes to reduce errors and processing times.
Enhance Compliance: Utilize data analytics to better understand taxpayer behavior and non-compliance patterns, enabling targeted enforcement actions.
Simplify Services: Provide online portals and digital platforms to make it easier for taxpayers to register, file returns, and make payments, thereby encouraging voluntary compliance.
Improve Efficiency: Increase the overall efficiency and effectiveness of revenue collection.
Broaden the Tax Base: Help formalize and bring micro, small, and medium businesses into the tax net through simplified systems like the modified taxation program.
Overall, the ITAS project is a major administrative reform aimed at leveraging technology to build a more efficient, fair, and inclusive tax system in Ghana.