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The Minority in Parliament has accused the ruling party of preparing to give tax breaks worth a whopping 7 billion Ghana cedis to those connected to the commerce sector.
This information has come to light in the context of a 5 billion Ghanaian cedi tax waiver request that is presently being reviewed by the Finance Committee. The request is allegedly being made as part of incentive packages for the One District One Factory (1D1F) scheme.
On Wednesday, December 13, 2023, Mr. Yussif Sulemana, the Ranking Member of the Trade and Industry Committee, warned journalists in Accra that unless the government rescinds these disproportionate tax breaks, the Minority would fight any attempts to impose more regressive taxes on Ghanaians.
Highlighting the fiscal implications, Mr Sulemana emphasised: “The 2024 budget alone is imposing taxes to the tune of GHS11 billion. The unfortunate thing is that while we are taxing the poor Ghanaians to raise this revenue, we are also at the same time granting tax waivers to friends and family members.”
Providing specific figures, he noted: “For instance, we have about GHS5.5 billion tax exemptions waiting at the finance committee. We have also been reliably informed, and we are speaking because we have seen documents that suggest that they’re bringing another GHS7 billion tax waiver request to parliament. Now, if you put the two together, we are talking about GHS12.5 billion tax exemptions.”
Mr. Sulemana expressed his dissatisfaction with the seeming contradiction, questioning the logic of enacting taxes and offering large exemptions at the same time.
“You are wishing to give your friends and family members GHS12.5 billion in tax exemptions under 1D1F,” he said. You are imposing GHS11 billion in taxes at the same time. Could you compare the two?”
Mr. Sulemana declared: “We are suggesting that the tax bill that they are going to bring in this particular budget will encounter some serious opposition because we think it doesn’t make sense. We refuse to take a seat and let them tax our people.”
Source: Ghanatodayonline.com
