The Majority in Parliament has exposed the double standards of the National Democratic Congress (NDC) Minority Group in Parliament.

At a press conference on Thursday, May 30, 2024 the Majority Leader, Alexander Afenyo-Markin chronicled instances where the Minority, while occupying the other side of the House in 2015, had supported tax exemption, but is now playing the ostrich.

The Majority Leader recalled that the House, at its recent sitting, could not approve the request for tax exemptions “due to the opposition of the Minority Leader and his members.”

The majority cited the tax waivers granted to Meridian Port Services (MPS) as a case study, demonstrating the double standards of their colleagues. They also released letters granting exemptions to some companies.

MPS DEBATE

He recalled that in June 2015, MPS Limited, with the support of the GPHA and the Ministry of Transport, made an application for tax waivers and concessions of US$ 982 million through the Finance Ministry to Parliament.

This amount was reduced to US$ 832 million by the intervention of the Minority and on June 7, 2016 Parliament approved the request.

The Effutu MP said the Minority at the time argued that the government had been shortchanged in the provision of the tax concession.

“I remember Dr. Mark Assibey Yeboah, the former Member for New Juaben South, expressed his grievances on the floor. This was because the waiver was almost two-thirds of the actual project cost,” Afenyo-Markin said.

He said the majority disagreed with the position of the Minority, with Cassiel Ato Forson stating that they were not merely granting tax exemptions without consideration.

Ato Forson reportedly acknowledged that the tax exemption, as a percentage of revenue, was significant, but argued that countries commonly grant such exemptions.

“Hon. Ato Forson emphasised that refusing to grant tax exemptions for future investments could result in those investments relocating to other countries. He pointed out that MPS had the option to invest in Ghana, Ivory Coast or other neighbouring countries, and failure to grant the exemption could lead them to choose a different location.

“He further stressed that tax exemptions should be evaluated not only on revenue decisions, but also on their economic impact,” Afenyo-Markin recalled.

The current majority leader also recalled the argument of Fifi Fiave Kwetey, the then Minister of Transport, whose Ministry spearheaded the motion in Parliament.

Fifi Kwetey, according to Afenyo-Markin, justified the need for the tax exemptions, quoting him as saying that: “It is only a person who is not looking at the future of a country who is constantly obsessed with revenue now. So, if we are making some of these sacrifices to forsake revenue today, in order to attain a situation where our ports would be the best in the whole of the sub-region, make us competitive across the sub-region and so on, that is the way to go.’”

MAJORITY CASE

The Majority Leader asked whether the NDC, which in 2015 granted exemption, “no longer believes that tax waivers are beneficial for economic development?”

He continued that, “it seems contradictory to oppose the very measures they once advocated as crucial for attracting investment and fostering growth. Has there been a change in their perspective on the positive impact of tax incentives on our economy?”

EXEMPTIONS

A letter dated April 29, 2015 listed about nine companies for which the John Mahama administration waived taxes in respect of capital goods and equipment that were to be imported.

The companies were Messrs Ghacem Ltd., Messrs Dream Reality Ltd, Messrs Garden City Mall Ltd, Messrs Boston Investment Ltd, Messrs Shoprite Ghana Pty Ltd.

The rest were Messrs Ciment De L’Afrique Ghana Ltd, Messrs Vincien Sugar Refinery Ghana Ltd., Messrs Dzata Cement Ltd and Messrs Dream Reality Ltd.

Signed by then Secretary to the President, Kwesi Quartey, the letter was addressed to the Chief Executive Officer of the Ghana Investment Promotion Centre.

“This is to inform you that, on the recommendations of the Ministry of Finance, His Excellency the President has approved the recognition of the under-mentioned ten companies as strategic investors,” the letter read.

On January 7, 2016 the Secretary to the President, Kwesi Quartey, said approval had been given to six companies on VAT and import duties for capital goods and equipment imported.

The companies were Wilmar Africa Limited, West Hills Mall Limited, Tang Palace Hotel Limited, Mabani Seven Company and Sunon Asogli Power Limited (Phase II).

COOPERATION

Meanwhile, the Majority Leader, Afenyo-Markin, has advocated collaboration from the minority.

He explained that the tax waivers are not just for foreign investors, but they are going to help local businesses expand and become more competitive.

“I want to take this opportunity to urge our colleagues in the Minority to engage in constructive dialogue and reach a beneficial agreement that will ensure the smooth running of Government business,” the Majority Leader appealed.