The Ghana Revenue Authority (GRA) and the Finance Ministry are embroiled in a legal battle over plans to grant substantial tax waivers to 42 companies under the ambitious 1 District 1 Factory Initiative (1D1F). This lawsuit, spearheaded by three Minority Members of Parliament, has brought to light significant constitutional concerns.

MPs Challenge Tax Waivers as Unconstitutional

Leading the charge is Emmanuel Armah-Kofi Buah, Deputy Leader of the Minority in Parliament, alongside Bernard Ahiafor (MP for Akatsi South) and Kwame Agbodza (MP for Adaklu). These MPs argue that the proposed tax waivers are unconstitutional, citing Article 174 of the 1992 Constitution. They have filed a suit in the Supreme Court, seeking to suspend the tax waivers, which they deem not beneficial to the nation.

Call for Supreme Court Intervention

Bernard Ahiafor, one of the plaintiffs, has called for the Supreme Court’s intervention, emphasizing the need to uphold constitutional provisions. He stated, “It appears Article 174 of the Constitution is being violated. The Supreme Court has exclusive jurisdiction to interpret, and any citizen aggrieved by a constitutional contravention has the remedy of seeking interpretation and declaration at the Supreme Court.”

Tax Waiver Controversy Under 1D1F Initiative

The controversy began on May 20, 2021, when the government released a list of companies requesting tax waivers under the 1D1F initiative. The Ministry of Finance had initiated processes to secure approximately $335,072,712.13 in tax exemptions for these companies. Among the companies, Sentuo Oil Refinery Limited, a newly established entity, tops the list with a requested exemption amounting to $164,633,012.00.

Exemptions Act and Its Implications

The Exemptions Act, 2022 (Act 1083), presented in Parliament by the former Minister for Finance, Ken Ofori-Atta, lays the groundwork for these tax exemptions. However, the MPs’ lawsuit questions the legality and constitutional validity of these waivers, arguing that they are not in Ghana’s best interest.

Conclusion

The lawsuit against the Ghana Revenue Authority and the Finance Ministry highlights significant concerns over the constitutional adherence and economic impact of the tax waivers under the 1D1F initiative. As the case progresses in the Supreme Court, it underscores the critical balance between fostering industrial growth and ensuring constitutional compliance in Ghana’s economic policies.