Government faces backlash over alleged GHS 7bn tax waivers to trade industry allies

In a press conference held in Accra on Wednesday, the Minority in Parliament accused the Government of orchestrating a substantial GHS 7 billion tax waiver scheme, purportedly benefitting individuals with close ties to the trade industry. These revelations have emerged alongside an existing GHS 5 billion tax waiver request, ostensibly framed as incentive packages for the One District One Factory (1D1F) policy.

Yussif Sulemana, the Ranking Member on the Trade and Industry Committee, addressed journalists, expressing deep concern over what he described as “egregious tax waivers.” Mr Sulemana warned that the Minority would vehemently oppose any attempts to impose additional regressive taxes on the Ghanaian populace unless the government reevaluates and withdraws these perceived tax waivers.

The fiscal landscape painted by Mr Sulemana reveals that the 2024 budget already imposes taxes amounting to GHS 11 billion, a figure sharply contrasted by allegations of the government simultaneously granting tax exemptions totaling GHS 12.5 billion to associates, friends, and family members. The Minority representative cited documents pointing to a GHS 5.5 billion tax exemption request currently before the finance committee, with an additional GHS 7 billion waiver allegedly in the pipeline.

The apparent contradiction of taxing citizens to raise revenue while concurrently providing substantial tax exemptions has raised eyebrows. Mr Sulemana questioned the coherence of imposing GHS 11 billion in taxes while greenlighting GHS 12.5 billion in tax exemptions, labeling the situation as nonsensical.

In response, the Minority has signaled its intent to rigorously oppose any forthcoming tax bill, asserting their commitment to safeguarding the public from what they perceive as undue taxation.

“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. 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.”

“Here you are wanting to grant GHS12.5 billion to your friends and family members in the name of tax exemptions under 1D1F. At the same time, you are imposing taxes to the tune of GHS11 billion. Can you juxtapose the two.

“We think that it doesn’t make sense to us, and so we are saying that the tax bill that they are going to introduce in this particular budget will face some stiff opposition. We will not sit down and allow them to impose taxes on our people,” he stated.