Parliament has approved a $10.46 million tax waiver for Tata Consultancy Services Ltd to implement the integrated tax administration system (ITAS) project for the Ghana Revenue Authority.
The agreement will allow Tata to implement the ITAS to improve compliance, expand tax base, reduce leakages and enhance revenue from the digital economy.
Under the agreement, Tata will be granted a 20 per cent withholding tax on the income and value-added tax on imported services.
As part of broader reforms to address the limitations of GRA’s ability to deliver quality taxpayer services, track and enforce compliance effectively, and improve domestic revenue mobilisation, the authority signed an agreement with Tata for the implementation of the ITAS on May 24, 2024.
This was because the IMF had made ITAS a key structural benchmark under the ongoing Extended Credit Facility (ECF) programme as it identified its implementation as essential for enhancing tax compliance, boosting revenue performance, and improving the business environment.
The agreement, which was first initiated under the previous administration, was presented to Parliament by the Minister of Finance, Dr Cassiel Ato Forson, on November 13, 2025 and it was referred to the Finance Committee.
Justification for agreement
Providing a justification of the agreement in Parliament on Tuesday, Dr Forson said the GRA signed the contract with Tata in May 2024
He said the procurement of the ITAS project initially commenced through a competitive bidding in January 2024.
He, however, said that the process was cancelled towards its conclusion due to a transition between Commissioner General Dr Ammish Owusu-Amoah, and Commissioner General Julie Essiam.
When Commissioner General Essiam took office, he said, the new leadership of GRA awarded the contract on a sole sourcing basis, even though there was a running competitive sourcing.
He said on November 4, 2024, an addendum was signed by Tata Consultancy Services Ltd and GRA, with Commissioner General Essiam signing on behalf of the GRA.
“The agreement says, subject to approval provided by Parliament of Ghana, Tata Consultancy Services is entitled to a 20 per cent withholding tax exemption from January 1, 2025, till the end date as set out under clause 4 of the agreement.
“Mr Speaker, it says that GRA shall be responsible and do all such acts required for obtaining such approval from Parliament. I am cleaning your [previous administration] mess,’ Dr Forson said.
Arguing that his principle and position on tax was still unwavering, Dr Forson said the agreement was signed by the previous administration imposing an obligation on the people of Ghana.
“So Mr Speaker, the GRA is entitled to ensure that 20 per cent withholding tax is given to Tata Consultancy Services.
“I have not signed this contract, and the new Commissioner General, Anthony Sarpong, never signed this contract,” he said.
Dr Forson said the only reason he was bringing the agreement to Parliament was because Tata Consultancy Services was a foreign company, and before the contract should have been signed, “they should have come to Parliament under article 1815.”
“Mr Speaker, they did not come to you under article 1815 of the Constitution, and I am here to make sure that the right thing is done, and I am cleaning your mess.
“Apart from that, the Ministry of Finance cannot sit at the office and approve this tax obligation.”
Reduction of project cost
Telling the House other actions he took to rectify the anomaly, Dr Forson said that because the process of competitive sourcing was truncated, he asked the Commissioner General of the GRA to further renegotiate the programme.
“In further renegotiating the programme, we were able to reduce the cost of software and related items from $25.3 million to $20 million, saving $5.3 million on one line alone.
“I also negotiated downward hardware and related items from $15 million to $13.7 million; overall, everything put together, we saved $9 million plus for re-negotiating this agreement,” he said.
Dr Forson explained that the reason why he re-negotiated the agreement was to ensure that it was well implemented, was to make it “legal and stay within the remit of the law”.
Expressing his belief that the software was good, Dr Forson said, “before I implement, I have to come and clean everything else that I believe was wrong and that includes seeking parliamentary approval and renegotiating it.”
Minority’s opposition
Opposing the agreement, the Minority Chief Whip, Frank Annoh-Dompreh, said the Minority’s dissenting view was premised on principle.
He recalled that last year, the now NDC Majority, then the Minority, kicked against about 47 tax exemptions put before the House.
He said even at the point of bringing exemptions that were related to One-District-One-Factory with the intention of creating jobs for the youth were opposed by the NDC MPs.
“Today, we are being invited to be part of an illegality, something that they spoke against it,” he said.
He pointed out that the Income Tax Act, 2015, gave the Commissioner General of GRA some powers, a reason that the Tata tax waiver application should be made by the GRA boss.
“Do not bring it to this House especially knowing your track record and what you stood for,” he said.
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