Gov’t Withdraws Tax Exemptions Bill From Parliament

Government has withdrawn the Tax Exemptions Bill from Parliament.

Even though no official reason was given on the floor for the withdrawal, the  sources indicate that the withdrawal is to make way for corrections and amendments to the bill.

After years of advocacy and pressure from civil society organizations and other actors in the civic space, the Tax Exemptions Bill was finally before Parliament in 2021.

The bill, which seeks to streamline the tax exemption regime in the country, was first laid on the floor of Parliament in 2017, but was not passed before the tenure of the 7th Parliament elapsed on 7th January 2021.

During proceedings on Thursday, Deputy Finance Minister, Dr. John Kumah withdrew the bill from the house.

The Minority Leader, Haruna Iddrisu, reacting to this, expressed reservations about the withdrawal of such a critical bill.

 

“You’re withdrawing the exemptions bill. The Bill which was brought in 2017 couldn’t be pursued. You’re committed to dealing with tax leakages through exemptions, which is over US$2 billion, and you want to withdraw the bill? Show commitment to it.”

 

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

It will comprise tax waivers given to local and foreign companies to encourage increased investment and more foreign direct investment in the economy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source:  Citi Business News