Majority Leader, Alexander Kwamena Afenyo-Markin has said Parliament may consider climate-sensitivity agendain the operations of companies, before granting them tax waiver. According to him, climate is more pronounced than before and it is imperative for the legislature to step up its scrutiny efforts in ensuring that businesses/companies adhere to environmental impact assessment or outline climate action plan is key.
He made these statements during a press briefing by the New Patriotic Party (NPP), criticising the Minority National Democratic Congress (NDC), for stampeding government’s industralisation agenda through the One District one Factory (IDIF) policy.
In 2021, the Ministry of Finance began processes to secure approximately $335,072,712.13 in tax exemptions for some 42 companies under the One District One Factory initiative but has not been successfull. The minority NDC which is against the waivers has remained resolute in its oppossition to the waivers in parliament with the justification that granting the $335 million tax waivers to 42 companies amounts to giving away free money in the wake of current economic challenges facing the country.
Addressing a press conference in Parliament House on Thursday May 30, 2024, the Majority leader, Alexander Kwamina Afenyo-Markin criticised the minority describing its action as an act of double standards saying when the NDC were in government granted millions of dollars tax waivers to several firms.
Mr. Afenyo-Markin accused his colleague, Dr Ato Forson for leading the charge to obstruct goverment’s business to deny the citizens of economic growth. The leader indicated that the NDC government granted tax exemption to Meridian Port Services (MPS) alone, to an amount exceeding the total value being sought by the NPP government for all the 42 firms under the IDIF policy.
According to the Majority leader, the erstwhile NDC regime under president John Dramani Mahama granted $832 million value of tax waiver to MPS even though the company was expected to invest just $1.5 billion into the local economy.
This amount, $832 million granted to just one foreign firm he said exceeds the total amount of $353 million being requested for for the 42 firms combined. In 2016, Ghana experienced the most outrageous tax waivers ever seen, led by Ex-President John Mahama, gave a tax waiver of $832 million to Meridian Port Services, but through the vigilance of the minority then, it shut down from $982 to $832 million, which saved the government and the people of Ghana some $100 million” Mr Afenyo-Markin said MPS was exempted from paying Corporate income tax and dividends to shareholders for a period of ten years.
He chastised the NDC government of engaging in worse dealings during their reign but turned around to destruct the current NPP administration by its opposition to the tax waiver requests. The Majority leader also claimed that the NDC administration through the Ghana Investment Promotion Centre
(GIPC) designated some companies as strategic investments and without recourse to parliament granted tax waivers to the companies to do business.
He listed the companies as Dzata cement, Dream Reality, Boston Investment among others. The NPP Majority maintained that the proposed businesses of all the 42 companies which were selected out of
hundreds by officials of the ministry of finance for tax exemption after going through regorous selection processes are important to the Ghanaian economy.
He therefore called on the Minority to support government in its efforts to give incentivise to local businesses to enhance Ghana’s industrialisation agenda through the IDIF initiatives. To ensure that tax waivers are granted to companies that align with climate-sensitivity agenda, the Parliament of
Ghana, may consider these suggestions by CCLG-Africa, a climate communication experts for better results.
Establish clear criteria: Define specific criteria that companies must meet to be considered climate sensitive, such as:
- Renewable energy usage
- Carbon footprint reduction
- Sustainable practices
- Climate change mitigation and adaptation efforts
- Conduct thorough assessments: Require companies to provide detailed reports on their climate-related activities and progress towards meeting the established criteria.
- Independent verification: Engage independent experts or organizations to verify the accuracy of companies’ reports and ensure compliance with the criteria.
- Transparent decision-making: Make the tax waiver application and approval process transparent, with clear justification for granting waivers to climate-sensitive companies.
- Regular monitoring and evaluation: Periodically review and assess companies’ continued alignment with the climate-sensitivity agenda to ensure ongoing compliance.
- Collaboration with climate experts: Consult with climate change experts and stakeholders to ensure the criteria and assessment process are robust and effective.
- Incentivize climate leadership: Consider offering additional incentives for companies demonstrating exceptional climate leadership and innovation.
By implementing these measures, the Parliament of Ghana can ensure that tax waivers support companies prioritizing climate action and contribute to a sustainable future.
