Government to End 1D1F Tax Exemptions Over Alleged Abuse
Finance Minister, Cassiel Ato Forson, has announced that the government will discontinue the tax exemption policy under the One District, One Factory (1D1F) initiative, citing widespread abuse under the previous Akufo-Addo administration.
Addressing Parliament on March 26, Mr. Forson stated: “As Finance Minister, I’m not going to continue with the 1D1F tax exemption because the evidence before this House suggests it has been abused badly.”
While acknowledging the industrialisation and economic growth objectives of the initiative, he noted that the exemptions had been misused, undermining their intended impact.
The minister, however, assured that the government remains committed to supporting local industries and would explore alternative measures that ensure greater accountability.
“We will support genuine businesses that contribute to our economy, but we must put an end to policies that create loopholes for exploitation,” he added.
Background on 1D1F Tax Exemptions
In 2021, the Ministry of Finance initiated processes to secure approximately $335 million in tax exemptions for 42 companies under the 1D1F programme.
Launched by former President Nana Akufo-Addo, the 1D1F initiative was designed to drive manufacturing and value addition, shifting Ghana’s economy away from raw material exports towards industrialisation and processed goods exports.
The programme is private sector-led, with the government providing financial access and institutional support to facilitate the establishment of factories across the country.
With the new policy direction, the government is expected to introduce more stringent oversight mechanisms to ensure efficient resource allocation and enhanced economic benefits from industrialisation initiatives.
