Prof. Gatsi calls for regular reports on tax-exempt companies
Prof. John Gatsi, Dean of the University of Cape Coast Business School, has advocated for the regular publication of reports on companies that receive tax exemptions.
He stresses the importance of an objective mechanism to determine which companies qualify for such exemptions and a robust monitoring system to ensure these companies contribute to national benefits such as employment, economic growth, technology transfers, and revenue generation.
Prof. Gatsi believes that periodic reporting by these companies would enable the state to enforce compliance and impose sanctions if necessary.
He warns that Parliament’s practice of granting tax exemptions without proper monitoring could foster corruption and potentially involve political party sponsorships.
Furthermore, Prof. Gatsi argues that the debate on tax exemptions should focus on making the decision to seek such exemptions a costly one, thereby ensuring only genuinely deserving companies apply.
In 2021, the government requested Parliament to approve tax exemptions for various businesses participating in the 1D1F industrialization initiative, designed to signal to the international investor community that Ghana is a favourable environment for business.
However, the process has been impeded by extensive delays, particularly due to demands for further scrutiny by members of the Minority caucus.
Minority Leader Cassiel Ato Forson has opposed advancing the exemptions list, citing irregularities with some companies and their requested tax exemptions. The Minority has also rejected a proposal to present 15 companies deemed free of irregularities to Parliament, leaving the Majority Leader frustrated.
The prolonged delay—now in its fourth year—raises concerns about an intentional effort to obstruct the government’s agenda.
