Three opposition MPs have taken legal action against the Ghana Revenue Authority and the Finance Ministry, challenging their decision to exempt 42 companies participating in the “One District, One Factory” program from paying taxes.
The MPs are seeking a court order to halt the tax exemptions, arguing that they are detrimental to Ghana’s interests and should be suspended pending a Supreme Court review.
MPs Bernard Ahiafor (Akatsi South), Kwame Agbodza (Adaklu), and Emmanuel Armah-Kofi Buah (Ellembelle) have expressed strong opposition to the Ghana Revenue Authority’s plan to grant tax waivers to certain companies, citing that it is not in Ghana’s best interest and will have negative consequences for the country.
The three MPs argue that the tax waivers violate Article 174 of the 1992 Constitution and are therefore unconstitutional. They are asking the Supreme Court to rule that the waivers are invalid and have no legal standing, effectively rendering them null and void.
Bernard Ahiafor is calling on the Supreme Court to intervene and protect Ghana’s interests in this matter, implying that the court’s intervention is necessary to prevent harm to the country.
“It appears Article 174 of the Constitution is being violated, the Supreme Court is giving an exclusive jurisdiction to interpret, therefore, any citizen who is aggrieved that a particular portion of the Constitution is being contravened, the remedy available is to seek for interpretation and declaration at the Supreme Court which is the apex court.
“That is exactly what we have done in the circumstance, we’re seeking relief against the ones that are being implemented and the ones that are yet to be implemented,” the MP Akatsi South said.
On May 20, the government made public a list of companies under the One District One Factory (1D1F) initiative that have been granted tax waivers. This move is part of a process initiated by the Ministry of Finance in 2021 to secure tax exemptions totaling approximately $335 million for 42 companies participating in the 1D1F program.
In 2022, the then-Finance Minister, Ken Ofori-Atta, introduced the Exemptions Act, 2022 (Act 1083) to Parliament, which aimed to grant tax exemptions to certain companies, including those under the One District One Factory initiative.
Sentuo Oil Refinery Limited, a newly established company, tops the list with a staggering tax exemption of $164,633,012.00, the largest amount among the 42 companies benefiting from the initiative.
Story by: Michael Seh
