GRA, Finance Ministry Sued Over Tax Waivers for 42 Companies

The Ghana Revenue Authority (GRA) and the Finance Ministry are facing a lawsuit regarding their plans to grant tax waivers to 42 companies under the 1 District 1 Factory (1D1F) Initiative. The lawsuit was initiated by three Minority Members of Parliament, led by their Deputy Leader, Emmanuel Armah-Kofi Buah.

The MPs are petitioning the Supreme Court to suspend the tax waivers, arguing that they are not beneficial to the country. The plaintiffs, Bernard Ahiafor (MP for Akatsi South), Kwame Agbodza (MP for Adaklu), and Emmanuel Armah-Kofi Buah (MP for Ellembelle), contend that the GRA’s decision to grant these tax waivers is not in Ghana’s best interest.

They argue that the tax waivers contravene Article 174 of the 1992 Constitution, deeming them unconstitutional. The MPs are seeking a declaration from the Supreme Court that the waivers are null, void, and of no effect.

Bernard Ahiafor, one of the plaintiffs, is urging the Supreme Court to intervene for the sake of the country. “It appears Article 174 of the Constitution is being violated. The Supreme Court has exclusive jurisdiction to interpret the Constitution, so any citizen who believes a portion is being contravened can seek interpretation and declaration from the Supreme Court, which is exactly what we have done. We’re seeking relief against the implemented and yet-to-be-implemented waivers,” he said.

About the Tax Waiver

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 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.

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