In an unprecedented move, the 2025 budget was not presented for approval due to an ongoing impasse in Ghana’s Parliament, marking the first time in the history of the country’s 4th Republic that the budget for the forthcoming year has not been passed.
Finance Minister Dr. Mohammed Amin Adam was anticipated to present a mini-budget to cover the public sector’s expenditures for the first three months of 2025. However, this did not occur due to a contentious issue surrounding a $350 million tax waiver.
The controversy stems from the Akufo-Addo government’s push for these waivers, part of the One District One Factory (1D1F) initiative, aimed at supporting 42 companies. The New Patriotic Party (NPP) MPs supported these waivers, while the National Democratic Congress (NDC) MPs staunchly opposed them, arguing that such waivers are not in the national interest.
The government had made the approval of these tax waivers a prerequisite for presenting the mini-budget, a condition that the NDC MPs refused to accept. Despite threats of legal action from Minority Leader Dr. Cassiel Ato Forson, Dr. Amin Adam did not appear in Parliament on December 20, 2024, leading to the session’s adjournment until January 2, 2025.
Law Professor E. Kofi Abotsi from the University of Professional Studies, Accra (UPSA), expressed his bewilderment over the government’s insistence on the waivers in a post on X. He questioned the strategic significance of these waivers and why they would halt government business and parliamentary functions, especially given Ghana’s current economic challenges:
“What is the strategic importance of tax waivers for companies that it should dominate gov’t biz & stall Parliament in the dying embers of an administration? For a country sinking in debt with interest payments soon to restart, this is puzzling & leaves questions hanging!”
Among the companies set to benefit from these waivers are:
- Santuo Oil Refinery, slated to receive $164.6 million
- B5 Plus Limited
- Ferro Fabrik Limited
- Everpure Holdings Limited
- Miro Forestry Ghana Limited
The full list of the 42 entities intended to benefit from the $350 million in tax waivers has not been detailed in this report, but the issue continues to be a focal point of debate and discussion in both parliamentary and public forums, reflecting deep divisions on economic policy and governance as the current administration nears its end.
