The Minority in Parliament has described the $350 million tax exemption for 42 companies under the One District One Factory (1D1F) policy as shady and lacking value for money.
Richard Acheampong, a member of the Finance Committee in Parliament said there are underhand dealings to deny the state of resources. He questioned why the ruling NPP government didn’t reveal to Ghanaians that the 1D1F would be facilitated through tax exemptions.
“Why didn’t they state from the start that 1D1F will be facilitated through tax waiving? This is shady. It shows that something is happening in the background that we do not know about. They have a special interest in this. Let’s make sure there is value for money,” Richard Acheampong stated.
Richard Acheampong explained that a company’s contributions to the economy, employment opportunities and the government’s revenue through taxes are key metrics to consider in deciding if a company deserves tax exemptions.
“These are things the Committee looks at. We investigate the company’s contribution to Ghana’s national growth, employment creation, and tax payment. Then you can decide that indeed this company can help this country, so such an exemption is good” he said.
According to the Bia East MP, most of the companies presented for tax exemptions have operated for at least 3 years but have not shown any signs of impact on the Ghanaian economy.
“Some companies have been established in this country, and for 3-5 years, how many taxes have they paid to the government? How many people have they employed? What is their impact on the economy? So ask yourself, on what basis are you looking to give off this tax exemption”?
