Trade and Industry Minister Kobina Tahir-Hammond has refuted accusations that the government is bringing too many tax exemptions to parliament, amounting to GH₵12 billion.
He said the government did nothing wrong by submitting a tax exemption application to Parliament for approval.
This is because a minority has identified a GH₵7 billion tax exemption that the government is trying to introduce under the guise of one district, one factory, but is actually an attempt to benefit the government’s cronies in the trade and industry industry. This follows claims made by Yusif Slemana, a senior member of the commission. .
KT Hammond declined to confirm the figures published by ranking members, but justified granting exemptions to companies affiliated with one district, one factory.
He also argued that there is nothing wrong with aiming for tax exemptions and new tax increases at the same time.
He asserted that the tax exemption is expected to strengthen the government’s one district, one factory plan.
“The IDIF initiative incorporates the fact that incentives will be given to companies that manage to raise funds from all sources of capital, have confidence in the Ghanaian economy and decide to invest in the Ghanaian economy. , one of the ways we encourage them is by giving them tax exemptions. It’s being done everywhere,” he explained.
The parliamentary minority claimed that the Ministry of Finance is seeking new tax exemption applications of more than GH₵7 billion, even though an additional GH₵5.5 billion₵ of exemption applications are pending.
This GH₵12 billion tax exemption application has all been submitted to Parliament’s Finance Committee, where a minority has blocked approval of the initial GH₵5.5 billion.
Yusif Slemana, a senior member of the Trade and Industry Committee, lamented these tax exemptions to reporters in parliament.
Bole Bamboi said it was unconscionable that the government was planning to levy just over GH₵11 billion in new taxes as part of the 2024 budget, while at the same time handing out GH₵12 billion for free as a tax exemption. He claimed that there was.
“The unfortunate thing is that while we are taxing poor Ghanaians to increase this revenue, we are also exempting our friends and, if necessary, family members from paying taxes. For example: Approximately GH₵500 million in tax exemptions are awaiting exemption in the Finance Committee.
“We are also speaking because we have certainly been informed and have seen documents suggesting that they are submitting a further GH₵7 billion tax exemption application to Parliament. If you put these two together, the tax exemption amount is approximately GH₵12.5 billion₵5 billion. Here you are giving your friends and family GH₵12.5 billion₵12.5 billion₵110 in the name of tax exemption under the name of 1D1F. We want to impose a tax of GH₵11 billion,” he said.
According to Slemana, the minority will not be able to pass these exemptions without a fight, as the introduction of taxes on companies has led to the bankruptcy of several companies in the country.
“We will not sit back and allow the people to be taxed,” he insisted.
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