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The One District One Factory (1D1F) program, which is the centerpiece of Ghana’s administration of the New Patriotic Party (NPP), has 42 enterprises waiting on legislative permission for tax incentives totaling over $335 million.
As part of the 1D1F plan, the Ministry of Finance started working in 2021 to get these corporations tax breaks totaling around $335 million.
The Exemptions Act, 2022 (Act 1083), which was introduced to Parliament by former Finance Minister Ken Ofori-Atta, governs several exemptions.
Sentuo Oil Refinery Limited, which was recently founded, is one of the beneficiaries. It would get the biggest exemption of $164.6 million.
The goal of the 1D1F program is to move Ghana’s economy away from import and export of raw materials and toward manufacturing and value-added exports.
Government support is provided to enterprises to help them get funds, and other government agencies assist in setting up factories as part of this private sector-led effort.
But the Minority has stated its determination to obstruct the action even before Parliament takes up the matter.
Dr. Cassiel Ato Forson, the minority leader, criticized the waivers
“It is the considered view of the Minority that these requests for tax exemptions running into several billions of cedis, are unconscionable, inordinate and bear all the trappings of organised crime…We in the Minority are serving notice that we shall resist these tax waiver applications fiercely! In their current forms, we shall resist each and every one of the tax waiver applications with all the tools and strategies at our disposal” Dr Ato Forson stated.
“The phenomenon of tax exemption as an avenue for corruption is a frightening development that threatens the domestic revenue reforms that the state is currently undertaking … The effect of these new taxes will result in the poor becoming poorer, suffocating industries and businesses and further increasing the hardships Ghanaians are already experiencing. This government is simply robbing Peter to pay Paul by exacting taxes from Ghanaians, only to dole out huge tax exemptions to their cronies for kickbacks. It is for this reason that we call on all Ghanaians to join us in this fight” he added.
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Source: Ghanatodayonline.com
