Dr. Cassiel Ato Forson
Parliament has approved the Master Agreement between the Government of Ghana, represented by the Ministry of Finance and the Ghana Revenue Authority (GRA), and Tata Consultancy Services Limited for professional services under the Integrated Tax Administration System (ITAS) Project.
The House also granted a waiver of 20 percent withholding tax and Value Added Tax (VAT) on imported services amounting to the cedi equivalent of US$10.46 million.
The approvals followed the adoption of the Finance Committee’s report after the House resolved to suspend Order 104(1) of the Standing Orders, which ordinarily requires a two-day interval before debating a motion.
The Master Agreement was presented to Parliament in compliance with Article 75 of the Constitution, which requires treaties, agreements, or conventions executed on behalf of Ghana to be ratified by Parliament.
The request was laid before the House by the Minister for Finance, in accordance with this constitutional requirement.
The House also approved a separate motion for the waiver of withholding tax and VAT obligations due from Tata Consultancy Services on imported services under the ITAS Project.
According to the Finance Committee, the waivers are essential for the smooth execution of the tax digitalisation programme.
Debate on the floor, however, was spirited. Minority Chief Whip, Frank Annoh-Dompreh, criticised what he described as a shift in principle by members of the Majority, who previously opposed tax exemptions.
He argued that the Majority’s new position contradicted their earlier stance when similar exemptions were introduced under the former administration.
But Finance Minister, Dr. Cassiel Ato Forson, defended the request, stressing that he was only ensuring compliance with the law.
He revealed that neither he nor the current GRA Commissioner-General had signed the agreement, adding that the contract should have been brought to Parliament earlier under Article 181(5), which governs international financial obligations.
Dr. Forson also disclosed that he directed a renegotiation of the agreement, resulting in a reduction of costs. According to him, the price of software and related items was cut from US$25.3 million to US$20 million, while hardware was reduced from US$15 million to US$13.7 million, saving the country a total of US$9 million.
He emphasised that the ITAS project had been identified by the International Monetary Fund (IMF) as a structural benchmark and was crucial for improving tax administration.
The system, he said, will provide a comprehensive, 360-degree view of taxpayer obligations, integrate GRA’s domestic tax operations with customs systems, and connect with the Registrar of Companies to enhance transparency.
By Ernest Kofi Adu, Parliament House