Some 49 companies under the NPP government’s flagship One District One Factory (1D1F) policy are currently awaiting parliamentary approval for a tax waiver request of over $335 million.
This is on the hindsight that Parliament, on the request of the Majority NPP, convened an emergency sitting last Friday to approve an additional financing facility of $150 million for the ongoing Greater Accra Resilient and Integrated Development (GARID) project
In 2021, the Ministry of Finance initiated processes to secure approximately $335,072,712.13 in tax exemptions for the said companies which are part of the 1D1F initiative.
These exemptions are part of the Exemptions Act, 2022 (Act 1083), which was presented to Parliament by the former Minister for Finance, Ken Ofori-Atta.
The list of beneficiaries includes the newly established Sentuo Oil Refinery Limited, which is set to receive the highest exemption amounting to $164,633,012.00.
The 1D1F initiative is a key component of President Nana Addo Dankwa Akufo-Addo’s vision to transform Ghana’s economy from one reliant on the import and export of raw materials to one centred on manufacturing, value addition, and the export of processed goods.
Under this private sector-led initiative, the government provides a supportive environment, enabling businesses to secure funding from financial institutions and receive additional support from government agencies to establish factories.
Even before that request is tabled before the house for consideration, the Minority in parliament has served notice of its intention to block the move.
“It is the considered view of the Minority that these requests for tax exemptions running into several billions of Cedis, are unconscionable, inordinate and bear all the trappings of organised crime…”
“We in the Minority are serving notice that we shall resist these tax waiver applications fiercely! In their current forms, we shall resist each and every one of the tax waiver applications with all the tools and strategies at our disposal,” the Minority Leader, Dr Cassiel Ato Forson warned.
He added, “The phenomenon of tax exemption as an avenue for corruption is a frightening development that threatens the domestic revenue reforms that the state is currently undertaking…”
“The effect of these new taxes will result in the poor becoming poorer, suffocating industries and businesses and further increasing the hardships Ghanaians are already experiencing. This government is simply robbing Peter to pay Paul by exacting taxes from Ghanaians, only to dole out huge tax exemptions to their cronies for kickbacks. It is for this reason that we call on all Ghanaians to join us in this fight.”
Below is the full list of the 42 companies:
