The Ghana Revenue Authority (GRA) and the Finance Ministry are facing a lawsuit over plans to grant tax breaks to 42 companies under the “1 District 1 Factory” initiative. The lawsuit was filed by three Minority Members of Parliament, led by their Deputy Leader, Emmanuel Armah-Kofi Buah.
The MPs, Bernard Ahiafor (MP for Akatsi South), Kwame Agbodza (MP for Adaklu), and Emmanuel Armah-Kofi Buah (MP for Ellembelle), are seeking to halt the tax breaks, arguing they do not benefit the country. They contend that the GRA’s decision to grant these tax breaks is not in Ghana’s best interest and violates Article 174 of the 1992 Constitution, making them unconstitutional. Consequently, they are asking the Supreme Court to declare the tax breaks null and void.
One of the plaintiffs, Bernard Ahiafor, emphasized the necessity of Supreme Court intervention for the good of the country. He pointed out that the Constitution is being violated and that the Supreme Court has the authority to interpret the law. He explained that any citizen who believes a part of the Constitution is being breached can seek interpretation and a declaration from the Supreme Court, which is what they are doing. They are seeking relief against both the tax breaks already given and those planned for the future.
On May 20, the government published a list of companies requesting tax breaks under the 1D1F initiative. In 2021, the Finance Ministry began processes to secure about $335 million in tax exemptions for 42 companies involved in the initiative. The Exemptions Act, 2022 (Act 1083), was introduced in Parliament by the former Finance Minister, Ken Ofori-Atta, in 2022.
Among these companies, Sentuo Oil Refinery Limited, a newly established entity, requested the highest exemption, amounting to approximately $165 million.
