John Mahama
The Majority caucus in Parliament has defended the government’s tax waivers granted to companies under the One-District-One-Factory policy, citing a larger tax waiver granted under the previous Mahama administration.
During a press conference on Thursday, Majority Leader Alexander Afenyo-Markin revealed that the Mahama government approved a substantial tax waiver of $982 million to Meridian Port Services (MPS) in 2016.
The tax waiver was later reduced to $832 million through the intervention of the then minority NPP members on the Finance Committee.
“This was the most outrageous tax giveaway ever seen in Ghana,” Afenyo-Markin said, slamming the previous administration’s actions. He emphasized that MPS had received a 10-year exemption from corporate income tax, reduced tax rates for five additional years, and tax benefits on dividends for two decades.
The Majority Leader also called for similar incentives to be extended to indigenous businesses and urged Parliament to address the issue.
He argued that tax waivers are essential for stimulating economic growth and attracting investments.
“We must encourage our own local businesses to thrive,” Afenyo-Markin said. “These tax waivers level the playing field and ensure that Ghanaian companies have a chance to succeed.”
The debate over tax waivers continues, with the Minority raising concerns about the potential impact on government revenue. However, the Majority maintains that these incentives are necessary to support businesses and drive economic development.
By Vincent Kubi