The Majority Leader and Leader of Government Business, Hon. Alexander Afenyo-Markin, has condemned the Minority in Parliament for obstructing crucial government business by blocking the adoption of several tax waivers.
Addressing the media in Parliament last Thursday, Afenyo-Markin emphasized the importance of tax waivers in stimulating economic growth, particularly in a competitive global market.
“The reduction in the tax burden will lead to expansion, increased productivity, and innovation, creating more jobs for the unemployed youth,” he stated.
On May 17, 2024, the Speaker of Parliament reconvened the house at the Majority Caucus’s request to consider urgent Government Business. The agenda included:
- Adoption of the Thirty-Fourth Report of the Appointments Committee on the President’s nominations for ministers, regional ministers, and deputy ministers.
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Approval of an Additional Financing Agreement between the Government of Ghana and the International Development Association (IDA) for $150 million to fund the ongoing Greater Accra Resilient and Integrated Development (GARID) project.
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Request for tax exemptions for selected beneficiaries under the One District, One Factory (1D1F) Programme.
While the House approved the ministerial appointments and the IDA facility, the request for tax exemptions was blocked by the Minority.
Reflecting on the past actions of the Minority and its leader, Afenyo-Markin pointed out that in June 2015, Meridian Port Services (MPS) Limited, with the support of the Ghana Ports and Harbours Authority (GPHA) and the Ministry of Transport, applied for tax waivers totalling $982 million. The amount was reduced to $832 million by the intervention of the then Minority, and Parliament approved the request on June 7, 2016.
He recalled how a former Member of New Juaben South, Dr. Mark Assibey Yeboah, expressed concerns that the government was being short-changed and that these were private people engaged in a purely private business venture and described the deal as a bad one.
Afenyo-Markin stated that Minority leader Ato Forson, then a key member of the Majority, defended the tax exemptions, arguing they were essential for attracting investment and fostering economic growth.
“Refusing to grant tax exemptions for future investments could result in those investments relocating to other countries. MPS had the option to invest in Ghana, Ivory Coast, or other neighbouring countries,” Forson had argued.
Fiifi Kwetey, the then Minister of Transport, also justified the need for tax exemptions, stating, “It is only a person who is not looking at the future of a country who is constantly obsessed with revenue now.”
According to him, several companies including Dzata Cement, Ghacem Ltd Garden City Mall among many others benefited from tax waivers under the then NDC government and supported by Ato Forson and the then Majority.
Questioning the current stance of the Minority, Afenyo-Markin asked, “Do they no longer believe that tax waivers are beneficial for economic development? It seems contradictory to oppose the very measures they once advocated as crucial for attracting investment and fostering growth.”
The Majority Leader urged the Minority to engage in constructive dialogue and reach a beneficial agreement that will ensure the smooth running of government business.