Ranking Member on Finance Committee in Parliament, Dr Casiel Ato Forson, has hinted that most companies today are taking advantage of One District, One Factory to avoid tax duty.
The Member of Parliament for Ajumako Enyan Essiam, speaking with Akua Boakye Yiadom on Burning Issues Monday evening, explained that because laws of the country give 10 years tax exemptions to startup companies, some owners intentionally shut down after they exceed the period.
He said others also change the names and owners of companies so they can continue to enjoy the tax exemption privileges.
To him, because companies engaging in 1D1F will be given tax exemption, all existing companies are now partnering government for 1D1F in order to evade tax.
This, he said, is causing Ghana to lose over GHC5 billion to tax exemption every year.
“The truth is that Ghana’s tax exemption is being abused, some existing companies decide to join the one district one factory all because government will give them tax exemption and they collect a huge amount of money from the government even if they have already imported their goods to operate,” he said.
Dr Forson on the review of benchmark values said the government should have created a substitute to prevent the value from shooting up.
“My worry is about the benchmark value which is about to go up, we have to create a substitute. If the government is able to come out and say that we can sell the rice we have produced and for that matter impose more taxes to halt the importation on rice, I will be the first to talk for the government,” he said.
