The Majority caucus in Parliament has hit back at the Minority’s criticism of the government’s tax waivers to companies under the One-District-One-Factory policy.

The Minority had argued that the over $300 million tax exemptions for 42 firms would significantly impact the country’s economy.

However, addressing journalists in Accra on Thursday, May 30, the Majority Leader, Alexander Afenyo-Markin, countered that the Mahama administration had granted an even larger tax waiver in 2016.

Afenyo-Markin stated that the Mahama-led administration had offered a tax waiver of $982 million to Meridian Port Services, which was later reduced to $832 million, due to the intervention of the then minority NPP members on the Finance Committee.

“The most outrageous tax giveaway ever seen in Ghana was handed to Meridian Port Services in 2016 by the Mahama-led Administration.

“At the time, the NDC government applied to Parliament for a tax waiver of $982M for a project that they claimed cost $1.5B. It took the intervention of the minority NPP members of the Finance Committee, of which I was a member at the time, to lower the waiver amount to $832M. Even though that was still unacceptable, the NDC majority goaded on by the Terkper-Ato Forson-Mona Quartey Ministry of Finance railroaded the request through Parliament.”

He noted that the company was exempted from corporate income tax for 10 years, and then received a reduced corporate tax rate of 15% for an additional five years. The company was also excluded from paying taxes on dividends to shareholders for 20 years.

Source: citinewsroom.com