Accra: The Minority Caucus in Parliament has dismissed claims by Mr. Mahama Ayariga, the Majority Leader, that the previous New Patriotic Party (NPP) government abused tax incentives for 'One District, One Factory' (1D,1F) companies. Addressing a press conference at Parliament House, Mr. Michael Okyere Baafi, the NPP Member of Parliament for New Juaben South and a former Deputy Minister for Trade and Industry, clarified that the 1D,1F initiative was a two-tier programme aimed at boosting industrial production.
According to Ghana News Agency, Mr. Baafi explained that the then government facilitated tax incentives for businesses to enhance production. The initiative targeted two types of beneficiary companies: greenfield companies, which are businesses starting from scratch, and brownfield companies, which are those already in existence. He elaborated that the government provided a five-year tax holiday for greenfield companies and tax waivers for companies importing items or materials for production.
Mr. Baafi emphasized that globally, governments provide support to private companies to promote economic growth and job creation. He argued that the Majority Leader's allegations of companies abusing tax incentives were unfounded, as there were standardized arrangements in place for companies to access these benefits. He maintained that the government operated transparently, with nothing to hide regarding the facilitation of these incentives.
Earlier, Mr. Ayariga had claimed in his speech on the floor of Parliament that most companies under the 1D,1F programme abused tax incentives and that the majority of these companies were concentrated in the southern sector, rather than being distributed across the 261 districts of the country.
