The Majority Caucus of the Parliament of Ghana on Thursday, May 30, 2024 mounted the podium and exposed the double standards of the Minority Caucus over tax waivers the government wants to grant 42 private businesses operating under the One-District-One-Factory (1D1F) policy, in an effort to cushion them to expand and employ more people.
Addressing members of the Parliamentary Press Corps over the issue, the Majority Leader and MP for Effutu, Alexander Afenyo-Markin, questioned the hypocritical attitude of Members of Parliament (MPs) belonging to the opposition National Democratic Congress (NDC), when at one point they are in favour of a tax waiver and at another point they are against it.
A tax waiver policy worth US$335million, covering 42 private businesses operating under the 1D1F flagship program of the government is currently before Parliament for consideration and approval. It has been in the House for more than two years.
However, the NDC MPs have kicked against it, with the reason that some of the businesses don’t merit the amount that the government is seeking to grant them.
Besides, the overall amount involved is of concern to them at a time the country is battling with fiscal space in its development.
At the recent emergency recall of the House, the NDC MPs further resisted all attempts by the Majority Leader to consider and approve the tax waiver policy, when it was introduced on the floor for consideration.
Interestingly, the NDC, when in government granted a tax waiver worth US$832million to Meridian Port Services (MPS), a joint venture between Ghana Ports and Harbours Authority (GPHA) and Meridian Port Holdings Limited, which is a joint venture with Bollorė Transport and Logistics and APM Terminals.
In addition to that, MPS was exempted from Corporate Income Tax for 10 years, as well as a reduced Corporate Tax of 15% after ten years for additional five years and was also excluded from paying taxes on dividends to shareholders for 20 years.
“Seth Tekper, Mona Quartey and Ato Forson brought the deal to Parliament. Meridian Port Services was to invest a little over US$1.5billion. So, from the tax waiver of US$832million granted them by the NDC government, what that meant was that for that investment made, the government of Ghana gave away 55 Cents in tax waiver for every dollar that MPS requested”, he noted.
He added, “Under the 1D1F, all the 42 companies that government has so far brought to Parliament for tax waivers, the total tax waiver being applied for by the government is not even up to US$450million and these are Ghanaian companies that are registered in Ghana. Even so, there is one company, Sentuo, which is supposed to undertake an oil refinery as a major investment.
Upon further interrogation, their request has been cut by US100million. So, as it is today, the 42 companies that are before Parliament for tax waiver is not even up to US$350million compared to the US$832million tax waiver granted to MPS for the investment they made”.
The Chronicle understands that the tax waiver granted MPS also came with concession, which covered Value Added Tax, NHIL, Custom Duty and Withholding Tax among others.
“This foreign company is still enjoying all these freebies as we turn a blind eye to Ghanaian businesses”, an emotional Afenyo-Markin stated.
Afenyo-Markin, commenting further, revealed a situation where the then government, under Mr. Mahama, through an Executive fiat and without recourse to Parliament, also allegedly granted a huge undisclosed amount of tax waiver to Dzata Cement Limited, a private cement manufacturing company that belongs to his brother, Ibrahim Mahama.
He said the NPP, being a pro-business party, did not question it since they were of the opinion that the incentive provided the company will enable it to generate more employment opportunities for Ghanaians.
They are, however, at a loss as to why the NDC MPs will act in a manner that betrays their trust and appealed to them to reconsider their ways when the House resumes sitting on June 11, 2024.
At the emergency sitting, the Speaker directed the Finance Committee of Parliament to use the recess period to expedite action on all the referrals that have been made to it.
This was after the NDC MPs have again shot the tax waiver policy down when it was reintroduced by the Majority Leader for consideration and approval and appealed to the Speaker to grant them space to properly scrutinise the policy.
The Minority Leader, Dr. Cassiel Ato Forson, had stated that their strict action of contesting the tax waiver policy for the 42 private businesses has contributed in saving the country US$150million.
By Stephen Odoi-Larbi, reporting from Parliament House
