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MFWA boss questions MPs over GHC43 million tax exemption to a hotel under 1D1F

Dr Cassiel Ato Forson and Isaac Adongo

The executive director of the Media Foundation for West Africa (MFWA), Sulemana Braimah has questioned members of the Finance Committee of Parliament over the approval of a GHC43 million tax exemption for a hotel under the One District One Factory (1D1F) initiative.

In December 2022, Parliament granted a US$4 million tax waiver under the 1D1F programme to 4-Mac Limited, a company that is building a hotel at Airport Residential in Accra.

The waiver is to cover import bills and other import-related taxes of the company. The company also received a five-year tax holiday.

The parliamentary approval followed a request from the Ministry of Finance dated 25 July, 2022. The ministry initially sought approval for almost US$6.4 million in import tax relief for the construction of the four-star, Le Meridien hotel.  The 160-room hotel is expected to open its doors to customers in 2025.

An artistic impression of the Le Meridien Hotel project at the Airpot Residential area.

The Ministry of Finance wanted the relief granted in line with the tax exemption regime under the One District, One Factory Programme. This means the company would not pay a pesewa in taxes when it imports materials and equipment within the exemption granted. Additionally, the finance ministry asked that parliament allow the company not to pay VAT on items it procures locally for the project. Companies in this category also benefit from a five-year tax holiday.

Reacting to the development on Facebook on Tuesday (22 August) Barimah said constituents must demand accountability from the MPS.

Meet the Ranking and Deputy Ranking Members of the Finance Committee of our Parliament. On November 25, 2022, their committee recommended to the house to approve $3.9milliom (GHC43miilion at today’s rate) tax exemption for a company to build a luxurious 4-Star hotel at a plush area in Accra.

They agreed that the construction of the hotel falls under govt’s 1D1F policy. Ghanaians, and indeed, their respective Constituents in Ejumako and Bolgatanga, must demand from them why they agreed that a hotel construction fell under the One District, One Factory Policy, and recommended that parliament should approve for a company to keep $3.9million in taxes that would have come to the public coffers.

Below is the full statement:

 

 

 

Reporting by Fred Dzakpata in Accra with additional files from The Fourth Estate

 

 

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