Trade and Industry Minister K.T. Hammond is currently defending the government against allegations from the Minority in Parliament regarding approximately GH₵12.5 billion in proposed tax waivers.
The controversy began when the Ranking Member of the Trade and Industry Committee, Yusif Sulemana, claimed that the government is attempting to grant GH₵7 billion in new exemptions under the One District One Factory (1D1F) initiative, in addition to GH₵5.5 billion already pending before the Finance Committee.
The Minority argues that it is contradictory and unfair for the government to impose GH₵11 billion in new taxes on the general public through the 2024 budget while simultaneously giving away a larger amount in revenue through exemptions they claim benefit political allies and “cronies.”
In response, Minister Hammond justified the waivers as necessary incentives for companies that have demonstrated confidence in the Ghanaian economy by investing their capital into industrial projects. He maintained that providing tax breaks to foster industrialization is a standard global practice and insisted that bolstering the 1D1F program remains a top government priority.
However, the Minority has vowed to block these requests, citing the potential collapse of small businesses under the new tax burden and questioning the transparency of the selection process for the beneficiary companies.
