Tax exemption under 1D1F will be discontinued – Finance Minister

The Minister of Finance, Cassiel Ato Forson, has disclosed that government will not continue with the tax exemption policy under the One District, One Factory (1D1F) initiative because it was abused by the erstwhile Akufo-Addo administration.

He made this declaration while addressing Parliament on March 26.

“As Finance Minister, I’m not going to continue with the 1D1F tax exemption because the evidence before this House suggests it has been abused badly,” Mr Forson stated.

He pointed out that while the initiative aimed to support industrialisation and economic growth, the tax exemptions had been exploited in ways that undermined its intended objective.

Mr Forson assured Parliament that the government remains committed to supporting local industries, thus would explore alternatives that guarantee accountability.

“We will support genuine businesses that contribute to our economy, but we must put an end to policies that create loopholes for exploitation,” he added.

In 2021, the Ministry of Finance initiated processes to secure approximately $335,072,712.13 in tax exemptions for 42 companies under the government’s One District One Factory (1D1F) initiative.

The 1D1F initiative, envisioned by President Nana Addo Dankwa Akufo-Addo, aims to transform Ghana’s economy from one reliant on importing and exporting raw materials to a more robust economy centered on manufacturing, value addition, and exporting processed goods.

This initiative is driven by the private sector, with the government providing a supportive environment for the businesses.

This support includes facilitating access to funding from financial institutions and offering assistance from various government agencies to help establish factories.

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