Government has withdrawn the Tax Exemptions Bill from Parliament.
Even though no official reason was given on the floor for the withdrawal, Citi Business News sources indicate that the withdrawal is to make way for corrections and amendments to the bill.
The Tax Exemptions bill, when approved, is expected to harmonise the tax exemption and incentives regime in the country and help make it more efficient.It will comprise tax waivers given to local and foreign companies to encourage increased investment and more foreign direct investment in the economy.
Since 2017, government has made several attempts to pass the Tax Exemption bill to streamline the grant of exemptions.
During proceedings on Thursday, Deputy Finance Minister, Dr. John Kumah withdrew the bill from the house.
The Minority Leader, Haruna Iddrisu, reacting to this, expressed reservations about the withdrawal of such a critical bill.
“You’re withdrawing the exemptions bill. The Bill which was brought in 2017 couldn’t be pursued. You’re committed to dealing with tax leakages through exemptions, which is over US$2 billion, and you want to withdraw the bill? Show commitment to it.”
Parliament has also approved a set of guidelines to regulate the grant of tax waivers for the one district, one factory policy of government.
According to government figures, over 270 projects are currently underway under the policy.
Among the guidelines include a ban on the grant of waivers on the importation of products for 1D1F, which are available in Ghana.