Alexander Afenyo-Markin
The Majority caucus in Parliament has responded to the criticisms from the Minority regarding the government’s tax waivers to companies under the One-District-One-Factory policy.
The Minority had raised concerns over the $300 million in tax exemptions granted to 42 firms, citing potential negative impacts on the country’s economy.
However, during a press conference in Accra on Thursday, May 30, 2024 the Majority Leader, Alexander Afenyo-Markin, defended the government’s actions by pointing out that the previous administration led by Mahama had approved an even larger tax waiver in 2016. According to Afenyo-Markin, the Mahama government granted a hefty tax waiver of $982 million to Meridian Port Services, which was later reduced to $832 million due to the intervention of the then minority NPP members on the Finance Committee.
Afenyo-Markin criticized the previous administration for what he referred to as “the most outrageous tax giveaway ever seen in Ghana” and highlighted the intervention of minority NPP members to reduce the amount.
He emphasized that the company, Meridian Port Services, was exempted from corporate income tax for 10 years and received a reduced corporate tax rate for an additional five years. Additionally, the company enjoyed tax benefits on dividends to shareholders for two decades.
The Majority Leader called for similar benefits to be extended to indigenous businesses and urged Parliament to address the issue.
He stated that the tax waivers play a critical role in stimulating economic growth and attracting investments to the country.
In 2021, the Ministry of Finance initiated processes to secure approximately $335,072,712.13 in tax exemptions for 42 companies under the One District One Factory initiative. Sentuo Oil Refinery Limited emerged with the highest tax exemption figure of $164,633,012.00.
The debate over tax waivers continues to spark discussions within Parliament as both sides present their arguments regarding the impact and necessity of these incentives for businesses operating under government policies.
By Vincent Kubi