The Ghana Revenue Authority (GRA) and the Finance Ministry are facing a lawsuit over plans to grant tax waivers to 42 companies under the 1 District 1 Factory Initiatives. The suit was initiated by three Minority Members of Parliament, led by their Deputy Leader, Emmanuel Armah-Kofi Buah. The MPs are requesting that the Supreme Court suspend the tax waivers, arguing that they are not beneficial to the country.
They argue that the tax waivers are inconsistent with and in contravention of Article 174 of the 1992 Constitution, deeming them unconstitutional. They are seeking a declaration from the Supreme Court that the waivers are null, void, and of no effect. One of the plaintiffs, Bernard Ahiafor, is urging the Supreme Court to intervene for the sake of the country.
On May 20, the government released a list of companies requesting tax waivers under the 1D1F initiative. In 2021, the Ministry of Finance initiated processes to secure approximately $335,072,712.13 in tax exemptions for 42 companies participating in the government’s One District One Factory initiative.
The Exemptions Act, 2022 (Act 1083), was presented in Parliament by the former Minister for Finance, Ken Ofori-Atta, in 2022. Among the companies, Sentuo Oil Refinery Limited, a newly established entity, has the highest requested exemption amounting to $164,633,012.00.