The Minority in Parliament has expressed deep apprehension about what it says is an alarming increase in tax exemption being requested by companies.
The Caucus revealed that 45 companies, under categories like ‘one district-one-factory’ (1D1F) and ‘GIPC strategic investors,’ are seeking tax exemptions totaling US$449,446,247.95.
They further disclosed that an additional 118 companies are in the pipeline for tax exemptions, with a cumulative value of about GH¢7 billion Ghana Cedis.
Minority leader, Cassiel Ato Forson, in a statement to the media, alleged that certain individuals are exploiting the exemptions, potentially leading to organized crime and further economic strain on the nation.
He warned that the Minority caucus will vehemently resist these tax waiver applications, stating, “In their current forms, we shall resist every one of the tax waiver applications with all the tools and strategies at our disposal.”
“The current wave of tax exemptions, amounting to billions of cedis, is unconscionable and seems to bear all the trappings of organized crime. We cannot stand by as the state is burdened with hefty tax waivers while essential services suffer,” he added.
He emphasized the potential threat to ongoing domestic revenue reforms and stressed that 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 Minority leader referenced a contentious incident in Parliament on July 28, 2023, where concerns were raised about the due diligence process for tax waivers and alluded to alleged pressure tactics by certain government officials.
He pointed to the 2024 Budget and the government’s aim to generate GH¢11 billion from new tax measures while at the same time dishing out about GH¢8 billion in tax waivers.
The Minority warns of adverse effects on the general populace with the new taxes.
“This government is robbing Peter to pay Paul by exacting taxes from Ghanaians, only to dole out huge tax exemptions to their cronies for kickbacks,” he stated.
The Minority leader urged all Ghanaians to join in the fight against exploitation of tax exemptions for personal gain.