Majority accuses Minority of impeding $335m tax exemptions for 42 companies under 1D1F
Parliament has yet to grant tax exemptions for 42 companies under the One District, One Factory (1D1F) programme, due to delays by Parliament’s Finance Committee in completing the necessary scrutiny.
Majority Leader Alexander Afenyo-Markin has criticized the delay as a deliberate attempt by the Minority to impede government efforts to attract investment.
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.
These delays threaten to stifle industrial growth, the tax exemptions are designed to reduce operational costs, making it more attractive for businesses to establish and expand operations. Without these incentives, companies may scale back their plans, leading to slower industrialization and fewer job opportunities, undermining the 1D1F programme’s objectives.
The impasse could also negatively affect investor confidence, international investors seek stability and predictability in economic policies. Political gridlock and uncertainty surrounding the tax exemption process may deter potential investors, fearing similar bureaucratic hurdles and a lack of policy consistency in the future.
It is imperative for Parliament to leverage its numerical composition to foster bipartisan relations for the benefit of Ghana. Healthy bipartisan collaborations create stable environments that favour businesses, irrespective of the government in power.
