Finance Minister Ken Ofori-Atta has told Parliament that should the Tax Exemptions Bill 2021 be approved by the house, it will be implemented in 2022.

Delivering the 2022 budget statement and economic policy statement to parliament, he said government is determined to raise more revenue for the country’s development and the introduction of the bill is one of such measures.

“Mr. Speaker, after undergoing several reviews the Exemptions Bill has been completed and laid before Parliament. We hope to work with this House for final passage and implementation in 2022,” the Finance Minister said.

The bill was laid in parliament on behalf of the Finance Minister by Majority Leader Osei Kyei-Mensah-Bonsu the day before and referred to the appropriate committee.

Ghana provides a number of tax exemptions and incentives to encourage private investment and reduce the tax burden on certain companies operating in the country.

These exemptions must necessarily be approved by parliament first after the companies apply to the Finance Ministry.

Foreign companies have reportedly been the largest beneficiaries, but some local ones also do get it.

Statistics indicate that the state loses an amount equivalent to 12.5% of all taxes collected annually, to tax exemptions given to companies by government and parliament.

The bill when approved is expected to harmonise the tax exemption and incentives regime in the country and help make it more efficient.

An earlier attempt to get it approved in 2020 failed after the life span of the previous parliament expired before approval processes were concluded.

Some Civil Society Organisations under the banner, the Legislative Advocacy Working Group, have been championing demands for a re-introduction of the bill in parliament.

The groups include Tax Justice Coalition (TJC), Parliamentary Network Africa (PN Africa), and the Ghana Anti-Corruption Coalition Ghana (GACC), with support from Oxfam.

Ahead of the delivery of the budget statement, the groups urged government to prioritise the bill.

Bernard Anaba of the Tax Justice Coalition said “we expect that the bill also becomes one of the items on the budget that the minister submits to parliament this time around. This time we want seriousness on this issue.”

“As the sponsors of the bill, they should show commitment in pushing the bill through. We want to see the bill as one of the major issues in parliament,” he added.

Louis Acheampong of the Tax Justice Coalition also said; “we are further expecting the Minister of Finance to hold up the passage and to give some justification and need for the bill for enhanced domestic revenue mobilisation when the bill is passed. The exemption bill will help enhance domestic revenue mobilization.”