Chinese-owned company Sentuo Oil Refinery Limited tops the list of 42 companies requested to receive tax waivers under the One District One Factory (1D1F) programme, with an amount of $164,633,012. This amount constitutes about 49.14% of the total tax waivers to be considered by Parliament, which amounts to $335,072,712.13.
The Ministry of Finance, led by Ken Ofori-Atta in 2020, initiated processes to secure approximately $335,072,712.13 in tax exemptions for 42 companies under the government’s One District One Factory (1D1F) initiative.
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Ofori-Atta later presented the Exemptions Act, 2022 (Act 1083) to Parliament in 2022.
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A deadlock occurred in Parliament over tax exemptions for the 42 companies as the minority claimed these exemptions were a cover for corruption, benefiting the ruling government’s allies.
The majority argued that tax exemptions were necessary for businesses in the 1D1F Factory initiative to succeed, boost economic growth, and attract investments.
President Nana Addo Dankwa Akufo-Addo’s 1D1F initiative aims to change Ghana’s economy from relying on importing and exporting raw materials to focusing on manufacturing, adding value, and exporting processed goods.
The majority on May 17, 2024, presented a request for tax exemptions to Parliament to be considered once again.
The top nine companies’ waivers make up 82.56% of the total tax waivers being considered by Parliament.
These are Sunda Ghana Limited with $23,690,843.79 (7.07%), Sunda Ghana Investment Limited with $22,897,602.41 (6.83%), Keda (Ghana) Ceramics Company Limited with $15,515,797.00 (4.63%), Triton Och Industries Ghana Limited with $12,212,297.84 (3.64%), B5 Plus Limited with $11,441,638.32 (3.41%), Multipac Company Limited with $9,526,392.82 (2.84%), Ciments de l’Afrique Ghana Limited with $8,623,885.31 (2.57%), and Ferro Fabrik Limited with $8,039,595.00 (2.40%).
The tax waivers apply to Import Duties, GET Fund Levy, Import NHIL, Import VAT, and EXIM Levy on imported materials, plants, machinery, equipment, and parts.
