News

Prof. John Gatsi calls for transparent reporting and monitoring of tax-exempt companies

210views

Prof. John Gatsi, Dean of the University of Cape Coast Business School, has emphasized the need for regular publication of reports on companies receiving tax exemptions. He advocates for an objective mechanism to determine eligibility for such exemptions and a robust monitoring system to ensure these companies contribute to national benefits like employment, economic growth, technology transfers, and revenue generation.

Prof. Gatsi argues that periodic reporting by these companies would enable the state to enforce compliance and impose sanctions if necessary. He warns that Parliament’s current practice of granting tax exemptions without proper monitoring could foster corruption and potentially involve political party sponsorships.

Furthermore, Prof. Gatsi believes the debate on tax exemptions should focus on making the decision to seek such exemptions a costly one, ensuring that only genuinely deserving companies apply.

“There must be an objective mechanism to determine the qualification of companies for tax exemptions and a monitoring mechanism to assure the country that benefits such as employment, growth, technology transfers, and revenue contributions are being delivered. Periodic reports by the Ghana Revenue Authority (GRA) to Parliament are essential,” Prof. Gatsi stated.

“Without these mechanisms, Parliament may not be acting in the country’s best interest. Tax exemption is an upfront investment in a company to serve the strategic interests of the state, so a periodic report is the minimum Parliament should demand, triggering sanctions for non-compliance. There is known corruption in the exemption process, and political party sponsorship could be embedded in it. The debate should focus on making the choice to request tax exemptions very costly,” he added.

His assertion follows ongoing debates and accusations against the Minority Caucus in Parliament by the Majority Caucus for allegedly obstructing the provision of $335 million in tax exemptions to 42 companies under the One District, One Factory (1D1F) programme.

In 2021, the government requested Parliament approve tax exemptions for various businesses participating in the 1D1F industrialization initiative, signalling to the international investor community that Ghana is a favourable environment for business.

However, the process has been delayed, particularly due to demands for further scrutiny by members of the Minority Caucus.

Minority Leader Cassiel Ato Forson has opposed advancing the exemptions list, citing irregularities with some companies and their requested tax exemptions.

The Minority has also rejected a proposal to present 15 companies deemed free of irregularities to Parliament, leaving the Majority Leader frustrated. The prolonged delay—now in its fourth year—raises concerns about an intentional effort to obstruct the government’s agenda.

Leave a Response


Notice: Function WP_Scripts::localize was called incorrectly. The $l10n parameter must be an array. To pass arbitrary data to scripts, use the wp_add_inline_script() function instead. Please see Debugging in WordPress for more information. (This message was added in version 5.7.0.) in /home/megasa5/investmenttimes/wp-includes/functions.php on line 6031

Notice: Function WP_Scripts::localize was called incorrectly. The $l10n parameter must be an array. To pass arbitrary data to scripts, use the wp_add_inline_script() function instead. Please see Debugging in WordPress for more information. (This message was added in version 5.7.0.) in /home/megasa5/investmenttimes/wp-includes/functions.php on line 6031

Notice: Function WP_Scripts::localize was called incorrectly. The $l10n parameter must be an array. To pass arbitrary data to scripts, use the wp_add_inline_script() function instead. Please see Debugging in WordPress for more information. (This message was added in version 5.7.0.) in /home/megasa5/investmenttimes/wp-includes/functions.php on line 6031

Notice: Function WP_Scripts::localize was called incorrectly. The $l10n parameter must be an array. To pass arbitrary data to scripts, use the wp_add_inline_script() function instead. Please see Debugging in WordPress for more information. (This message was added in version 5.7.0.) in /home/megasa5/investmenttimes/wp-includes/functions.php on line 6031