Some Members of Parliament have made a call for a more rigorous scrutiny to be performed on companies and organizations that are granted tax waiver status by the Executive and subsequently approved by the Parliament of Ghana.
According to them, while some of the beneficiary companies are undeserving of such overtures by the state because their activities do not directly benefit the public, others have abused the process over the years with very little to account for the concessions given them.
One of such MPs who wants Parliament to scrutinize such requests for tax exemptions and demand accountability from these organizations is the Ranking Member on the Finance Committee, Casiel Ato Forson, and MP for Ajumako/Enyan/Essiam constituency.
In seconding a motion to grant tax waivers to four institutions to the tune of 41 million Ghana Cedis in Parliament, indicated that it was about time the country started to link the tax waivers it grants to institutions to the productivity of the institutions and their benefit to the national course.
“Mr. Speaker, I am of the view that for us to approve such tax waivers of such magnitude, there is the need for us to link this to productivity over the years,” he indicated.
The Parliament of Ghana approved the exemption of Import Duties, Import Vat, Getfund Levy, NHIL Levy, Ecowas Levy, Exim Levy, Special Import Levy, AU Levy and other taxes for four organizations including: The Metro Mass Transit Ltd, the Intercity STC Company Ltd, the Ministry of Regional Reorganization and Development, and the Ghana Immigration Service.
According to him, the companies that are being granted the tax waivers have not proved themselves worthy of the privilege given to them since these waivers are public monies and therefore the need for the state to demand accountability from these institutions.
“Mr. Speaker unfortunately, we do not have enough evidence to suggest that Metro Mass Transit Ltd and the Intercity STC Ltd are actually performing to maximum operational efficiency in relation to productivity. This is rightly so because we are dealing with public funds,” he said.
He therefore requested that Parliament should have an engagement with the beneficiaries of the tax waivers for accountability purposes.
The Metro Mass Transit which has been recognized for the provision of social transport services to both rural and urban dwellers at moderate fares, was granted an estimated duty of GHC 14.8 million payable on some 50 buses procured for their services awaiting clearance at the Tema Port.
Waiver of taxes amounting to GHC 25.14 million was also granted to the Intercity STC Ltd 100 buses procured to enable the company enhance its operations and to enable them to continue to provide reliable and affordable public transport services especially to the rural-urban population.
Source: Clement Akoloh||businessweekghana.com
