Some companies hide behind 1D1F to escape from tax obligation – Ato Forson

Mobile Category

Ranking Member on Finance Committee in Parliament, Dr Casiel Ato Forson, has hinted that most companies are taking advantage of One District, One Factory (1D1F) to seepage from tax duty.

The MP for Ajumako Enyan Essiam, speaking on Adom FM’s Burning Issues, explained that because laws of the country give 10 years of tax exemptions to startup companies, some owners intentionally shut down after they exceeded the period.

He said others also changed the names and owners of companies to continue to enjoy the tax exemption privileges.

Dr Forson further explained that because companies engaging in 1D1F will be given tax exemption, all existing companies are now partnering government for 1D1F so that they will not pay tax.

CHECKOUT:   COVID-19: Full reopening of worship centres subject to protocols— Ogun govt

This, he argued, is causing Ghana to lose over ¢5 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 good to operate,” he said.

 Dr Forson, on the review of benchmark values, said government should have created a substitute adding that if government can place a tax on the importation of rice to discourage people from importing to patronise on local ones, he will be the first to talk for government.

CHECKOUT:   Deputy Finance Minister urges prospective entrepreneurs to embrace teething challenges

“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 government it”.

You Might Also Like

No Comments

    Leave a Reply

    %d bloggers like this: