Finance Minister Cassiel Ato Forson has stated that he will discontinue the tax exemption policy for the One District, One Factory (1D1F) initiative, citing instances of abuse.
Ato Forson emphasized that only Parliament has the legal authority to approve tax exemptions, and any exemptions previously granted outside of this process were deemed illegal.
“Only Parliament has the power to exempt someone from tax payments, so what was done in the past was illegal,” he said this while addressing Parliament.
His comments were challenged by Minority Leader Alexander Afenyo-Markin, who argued that tax exemptions are essential for the private sector and job creation.
Afenyo-Markin emphasized that offering incentives like tax exemptions enables companies to retain more capital, thereby facilitating business growth and increasing employment opportunities.
“Does the Finance Minister remember his days as a Minority Leader? Instead of taking notes and listening to opposing views, he is arguing and standing his ground as though he were still in opposition. He should get the argument right; he’s missing the point,” the Minority Leader stated.
He further argued, “Jobs are not created by firing public sector workers and replacing them. We create jobs by offering incentives to the private sector.”
However, Ato Forson stood firm in his stance, asserting that the previous administration’s failure to approve the exemptions during its eight-year term clearly showed that the policy was flawed.
