Tag: Deputy Finance Minister

  • Agenda 111: 35 contractors paid $7.9m for no work done – Deputy Finance Minister reveals

    Agenda 111: 35 contractors paid $7.9m for no work done – Deputy Finance Minister reveals

    Thirty-five contractors hired under Ghana’s Agenda 111 programme did not move to their assigned sites or executed work that fell short of the advance mobilisation funds they had received, according to the government’s arrears audit findings.

    The disclosure was made in Ghana’s Parliament when Deputy Finance Minister Thomas Nyarko Ampem delivered a statement on behalf of Finance Minister Cassiel Ato Forson.

    In his address to legislators, Mr Ampem explained that the contractors had collectively been paid approximately US$7.9 million in advance mobilisation funds for the project, yet some failed to commence work while others undertook activities that did not reflect the payments made.

    The statement indicated that the Ghana Audit Service has since issued surcharge notices to the contractors implicated in the matter.

    These developments have intensified concerns surrounding the administration of the Agenda 111 project, widely regarded as one of the largest healthcare infrastructure programmes initiated during the tenure of former President Nana Akufo-Addo and the New Patriotic Party government.

    Introduced in 2021, the project aimed to build 111 district and regional hospitals nationwide to expand healthcare access, particularly in communities lacking adequate medical facilities.

    Despite its objectives, the programme has repeatedly come under scrutiny due to construction delays, escalating costs, and concerns about monitoring and accountability.

    Mr Ampem also revealed that the advance payment guarantees associated with the 35 contracts have all lapsed, leaving the government with limited contractual safeguards to recover the money should the contractors fail to honour the surcharge directives.

    The Ministry of Finance did not specify whether further legal action or recovery strategies would be pursued beyond the measures already initiated by the Ghana Audit Service.

    It also remains uncertain how many of the proposed 111 hospitals have been completed or have reached significant stages of construction.

    The Minister of Health, Kwabena Mintah Akandoh, has attributed the decision by President John Mahama to order an audit into the Agenda 111 project to the lack of clarity and transparency surrounding its implementation under the previous administration.

    Speaking on Asempa FM’s Ekosii Sen, Mr. Akandoh revealed that none of the hospitals promised under the initiative is currently operational.

    “None of the Agenda 111 hospitals is operational as we speak, which is why President Mahama has directed that an audit be conducted to understand the true status of the project,” he stated.

    He criticised the former Akufo-Addo administration for what he described as poor planning and mismanagement of the health infrastructure project.

    “We all know how Agenda 111 started. The way the project was handled wasn’t the best. Even if you intend to build 111 hospitals, you could stagger the project and complete them in phases,” the Minister said.

    He pointed out that the Akufo-Addo government had assured the public that some of the hospitals would be completed and handed over before the end of their term. However, none of these facilities are in use.

    “He mentioned that they had completed three hospitals and even commissioned some on December 5. But when President Mahama gave his first State of the Nation Address and referenced it, I went to verify, and unfortunately, none of those hospitals was operational,” Mr. Akandoh noted.

    Highlighting inconsistencies in the project’s financing, the Minister disclosed that about $400 million had already been spent out of the estimated $1.7 billion to $1.9 billion budgeted for the entire project.

    “The interesting part is, if they had staggered the project as they should have, by now we could have completed more than 20 hospitals with that amount. But that wasn’t the case,” he lamented.

    With the Agenda 111 initiative now under the purview of the Ministry of Health, Mr. Akandoh said steps are being taken to assess its feasibility and ensure proper execution moving forward.

    “President Mahama has directed us to audit the Agenda 111 project and present him with a clear blueprint for the way forward, and we’ve been given timelines,” he added.

    The Ministry of Health has dismissed statements made by former Finance Minister Dr. Mohammed Amin Adam, who claimed that three hospitals under the Agenda 111 initiative were completed, furnished with medical equipment, and inaugurated before the previous administration left office.

    During a press briefing on Monday, Dr. Adam asserted that three hospitals had been fully completed and that $1.3 billion had been allocated to finish the remaining Agenda 111 projects.

    However, in a statement released on Tuesday, March 4, 2025, the Health Ministry denied these assertions and urged the public to disregard them.

    The Ministry reported that on March 3, officials visited the Trede and Kokoben hospital sites in the Ashanti Region to evaluate progress. Their assessment found that essential medical infrastructure, including imaging devices, medical gas systems, and mortuary equipment, was yet to be installed.

    Despite the previous government investing $400 million in the initiative, the Ministry emphasized that none of the Agenda 111 hospitals had been completed and made operational. Although the facilities at Trede, Kokoben, and Ahanta had been inaugurated by former President Nana Akufo-Addo, construction was still in progress, with an estimated completion rate of 95 percent. Some laboratory sections remained unfinished, and no medical devices had been put in place.

    Furthermore, the Ministry clarified that these hospitals had not been handed over to the Ghana Health Service for use. It estimated that an additional $8.03 million would be required to make each of the three hospitals fully functional. The overall cost to complete all pending Agenda 111 hospital projects had now risen to $1.589 billion.

  • Deputy Finance Minister advocates for taxation of  Facebook, Youtube, online trading companies

    Deputy Finance Minister advocates for taxation of Facebook, Youtube, online trading companies

    Deputy Finance Minister Dr. Alex Ampaabeng has proposed that online trading companies should be taxed to strengthen the economy.

    He highlighted that both local and international companies generate substantial revenue from their Ghanaian clients, making taxation necessary.

    In an interview with Bernard Avle on Channel One TV’s “The Point of View,” Dr. Ampaabeng discussed various potential revenue sources for Ghana, emphasising online businesses and content creation companies.

    He questioned why national companies operating in Ghana are taxed, while social media platforms like YouTube and Facebook, which host numerous advertisements, are not subject to the Ghanaian tax system.

    Dr. Ampaabeng pointed out that these social media companies profit from the advertisements they display, and online trading companies earn significant income from their products and services.

    He mentioned online trading platforms such as Jiji, Jumia, and Tonaton, which he believes exceed all physical marketplaces in Ghana in terms of scale.

    “I can’t think of a country that has not gotten a digital service tax system of some sort, so Ghana is long overdue. Just to make an example so that people will appreciate where I’m coming from. Go to YouTube and play a video, within one or two minutes, you are going to watch about two or three advertisements.

    “What it tells you is that Facebook or Youtube is making profits right here in Ghana. Go to your Facebook account, and you are going to see a number of ads on your right and left.

    What it is telling you is that Facebook is making profits right here in Ghana and not being taxed. Meanwhile, there are companies operating in Ghana, for jurisdictional reasons, of course, that are being taxed.

    “So then, it comes to the question of the application of our tax laws. Revenues generated in Ghana are subject to taxes. We have Facebook, TikTok and all those players; these are digital platform owners.”

    He stressed, “Then we have the digital or market players; here we are talking about individuals who are using the digital platforms. We have Jiji, Jumia, and Tonaton, these combined are bigger than all the physical marketplaces in Ghana. And it tells you the volume of transactions that are going on there.”

    He expressed his hope that individuals earning online profits from Ghanaian residents would be taxed.

    “There are conversations ongoing; I wouldn’t want to preempt anything, maybe in the future, it might not be anytime soon, what I would like to see is a Ghana where people who are earning all forms of profits in the country are subject to taxes. People who are trading online with Ghanaian residents, people who are generating revenue from Ghana, are allowed to pay taxes,” he noted.

    Additionally, he proposed a collaboration with the government to curb cybercrime by registering and verifying these online trading companies.

    “We can have a system where the government engages these operators, so individuals will submit their Ghana Card and are registered and verified.

  • Only individuals suffering from unconscious incompetence would blame depreciating cedi on NPP gov’t – Dr. Stephen Amoah

    Only individuals suffering from unconscious incompetence would blame depreciating cedi on NPP gov’t – Dr. Stephen Amoah

    Deputy Finance Minister Dr. Stephen Amoah has responded to critics attributing the current cedi depreciation to President Akufo-Addo’s government.

    During a media interaction on May 29, the Nhyiaeso MP emphasized that cedi depreciation has historically affected various governments and is not unique to the present administration.

    As a former MASLOC boss, Dr. Amoah pointed out that the import-driven nature of the economy is a significant factor contributing to cedi depreciation.

    He criticized those who attribute the issue solely to the current government, suggesting that this perspective shows a lack of awareness or intellectual dishonesty.

    “Unless one is suffering from unconscious incompetence or displaying intellectual dishonesty that would say that cedi depreciation is NPP government” noting that the problem is a “ritual” one.

    “It’s an issue that needs nationalistic attention. So far as we keep on being imported-driven economy, we’ll be having problems with cedi because we import almost everything.

    “But Insha-Allah, Alhaji Mahamudu Bawumia, next year if he comes, we are going to design a long term framework to deal with the cedi,” he stated.

    He referred to the problem as a recurring one, emphasizing the need for a comprehensive approach.

    Dr. Amoah hinted at a long-term strategy under Dr. Bawumia’s potential presidency to address cedi depreciation.

    He stressed the importance of a nationalistic approach and highlighted the dependency on imports as a core challenge.

    He expressed optimism that under Alhaji Mahamudu Bawumia’s leadership, a strategic framework would be developed to tackle the issue effectively.

  • I need an investigation into the sudden death of my husband – Late John Kumah’s wife

    I need an investigation into the sudden death of my husband – Late John Kumah’s wife

    Apostle Mrs. Lilian Kumah, the widow of the late Deputy Finance Minister, John Kumah, is demanding a thorough police investigation into allegations suggesting her husband’s demise resulted from food poisoning.

    In an official complaint to the Ghana Police Service, she specifically called for a probe into the claims made by Mr. Blessed Godsbrain Smart, popularly known as “Captain Smart,” who asserted that the late Minister fell victim to food poisoning.

    On February 21, 2024, Onua TV aired a video in which the presenter raised concerns about the Deputy Finance Minister suffering from the effects of food poisoning.

    The allegations extended to other politicians, including Mr. Bernard Antwi-Boasiako, known as Chairman Wontumi, the Ashanti Regional Chairman of the New Patriotic Party (NPP).

    The presenter also expressed worries about potential plots to harm or defame individuals with political, religious, and business interests, causing heightened anxiety among citizens and political stakeholders.

    In her complaint to the Police, Mrs. Kumah denounced Mr. Smart’s allegations as “misinforming and unfortunate,” emphasising the additional suffering and pain inflicted on the late Mr. John Kumah’s family.

    The Deputy Finance Minister, who also served as the Member of Parliament for Ejisu, passed away on March 7, 2024, under circumstances yet to be disclosed to the public.

    The news of his untimely passing sent shockwaves throughout the entire country, prompting tributes from President Nana Addo Dankwa Akufo-Addo, Vice-President Mahamudu Bawumia, government officials, and members of the New Patriotic Party, as well as opposition parties.

    President Akufo-Addo expressed deep sadness, describing John Ampontuah Kumah as a “bright, energetic light” lost from their midst.

    John Kumah, aged 45, passed away at the Suhum Government Hospital while en route to Accra and subsequently to Germany for medical treatment, according to his spokesperson, Bismarck Twumasi.

    He is survived by his wife and six children.

  • “Ghana and the NPP have lost a hardworking son” – Bawumia sympathizes with John Kumah’s family

    “Ghana and the NPP have lost a hardworking son” – Bawumia sympathizes with John Kumah’s family

    The New Patriotic Party (NPP) is mourning the untimely death of the Deputy Finance Minister, John Kumah, who passed away at the age of 45 on Thursday, March 7, 2024.

    Vice President Dr. Mahamudu Bawumia led a delegation, including the Chief of Staff, the NPP Chairman, and other government and party officials, to extend their condolences to the grieving family of the late Member of Parliament for Ejisu.

    Dr. Bawumia, who collaborated closely with John on various projects, took to Facebook to express his sorrow, asserting, “I had the opportunity to work with John on several projects to my greatest admiration. Indeed, Ghana and the NPP have lost a hardworking son.”

    He further conveyed his deepest condolences to John’s wife, Lilian, and their six children, as well as to his mother, the entire family, and all loved ones, concluding with a touching farewell, “John, Damirifa Due!”

    The sudden loss of this dedicated NPP member has sent shockwaves through the political landscape, leaving colleagues and supporters mourning the departure of a committed public servant.

    Details surrounding the cause of John Kumah’s passing remain undisclosed at this time, as the nation reflects on the legacy of a man who contributed significantly to Ghana’s political and economic landscape.

    See post below:

  • I need an autopsy for my son – Late John Kumah’s mother

    I need an autopsy for my son – Late John Kumah’s mother

    Late Deputy Finance Minister and Ejisu MP, Dr. John Kumah‘s mother sought closure through an autopsy to ascertain the true cause of his demise.

    Allegations of poisoning have circulated since the legislator’s sudden illness and subsequent passing on Thursday, March 7, 2024.

    Despite widespread suspicions, no confirmation from experts, family, or associates has been provided regarding the alleged poisoning.

    Speaking tearfully in an interview with JoyNews on March 8, the grieving mother expressed the profound pain the family is enduring and insisted on a thorough autopsy to verify the poisoning rumors.

    “I don’t know how my son died, they killed him because of position, he is a generous human being, my son’s death needs to be investigated,“ Late John Kumah’s mother stated.

    Questioning why anyone would wish such an end for her son, the distraught mother lamented the destruction of the family’s backbone.

    She emphasised the need for clarity surrounding Dr. Kumah’s death, asserting that the life of a determined young parliamentarian with a promising future has been prematurely lost.

    Ejisu residents also joined in mourning, praising the late MP for his remarkable impact on the constituency during his less-than-four-year service.

    They highlighted his personal attention to individuals, respect for everyone, and outstanding contributions, making it seem as though he had been serving for many more years.

    Residents celebrated his kindness and benevolence, describing how he treated everyone as if they were family.
    Dr. John Kumah, who passed away at the age of 45 after a brief illness, leaves behind a legacy as a devoted family man survived by his wife, Apostle Mrs. Lilian Kumah, and six children.

    Notably, he served as the inaugural Chief Executive Officer for the National Entrepreneurship and Innovation Programme (NEIP).

  • Meet John Kumah’s adorable wife, Apostle Mrs Lilian Kumah

    Meet John Kumah’s adorable wife, Apostle Mrs Lilian Kumah

    The late Ghanaian politician, John Kumah,born on August 4, 1978, was not only an entrepreneur, preacher, and lawyer but also a dedicated public servant.

    He served as the Chief Executive Officer of the National Entrepreneurship and Innovation Programme (NEIP) and successfully clinched the position of Member of Parliament for the Ejisu constituency in the 2020 Ghanaian general election.

    Kumah’s educational journey included Opoku Ware School in Kumasi and the University of Ghana, where he earned a Bachelor of Arts in Economics with Philosophy.

    His academic pursuits continued, leading to an MBA from GIMPA, a Degree in Law from the University of Ghana, and a Professional Law Degree from the Ghana School of Law.

    In 2019, he furthered his education with a Post Graduate Diploma in Applied Business Research from the Nobel International Business School.

    Kumah’s dedication and humility were recognized when he was named among President Akufo Addo’s top 20 Most Humble and Respectful Appointees in 2019.

    His commitment to integrity earned him accolades from the Africa Centre for Integrity and Development (ACID) and the All African Student Union (AASU) for promoting student activism and entrepreneurship.

    In August 2022, Kumah displayed a compassionate side by contributing to the well-being of society. He made payments for five different sets of prosthesis for road accident victims, demonstrating his commitment to philanthropy.

    On a personal note, John Kumah found happiness in his marriage to Apostle Mrs. Lilian Kumah, the Founder and Senior Pastor of Disciple of Christ Ministries Worldwide. Their family expanded to include six biological children and additional foster children, although their identities remained private.

    Unfortunately, John Kumah’s vibrant life was cut short at the age of 45, and the cause of his passing remains undisclosed to the public. In his memory, his legacy as a multifaceted individual who contributed significantly to politics, entrepreneurship, and philanthropy lives on.

  • The ‘oluman’ is here! – How an NDC NEC member described Mahama

    The ‘oluman’ is here! – How an NDC NEC member described Mahama

    A member actively involved in the operations of the National Democratic Congress (NDC) within the National Executive Committee (NEC) has characterized the party’s flagbearer, John Dramani Mahama, as the “oluman.”

    According to Alhaji Koomson, the term describes Mahama’s notable presence and influence within the party.


    During an interview with Joynews, the NEC member emphasized Mahama’s significant role, stating that the “oluman” is not only present but is also poised to unveil the chosen individual who will serve as his running mate for the upcoming 2024 elections.

    This announcement, according to the member, is a critical step in the party’s strategic plan to secure victory in the elections.

    “My name is Alhaji Koomson, I am from Tamale, Yendi is my constituency. I am a member of the operations committee of NEC. Currently the oluman is here, our flagbearer is here to submit to us the name and the person who he thinks will partner him for us to win the 2024 elections Insha Allah,” he added.

    Meanwhile, the party has officially declared that Professor Jane Naana Opoku-Agyemang will once again be the running mate for former President John Dramani Mahama in the upcoming 2024 presidential election, a position she previously held in the 2020 general elections.

    Amid speculations about potential candidates, including Julius Debrah and Awuah-Darko, for the running mate role, Mahama’s decision to retain Professor Jane Naana Opoku-Agyemang was confirmed following deliberations by the Council of Elders on Thursday, March 7, 2024.

    In an announcement, the NDC proudly introduced Professor Naana Jane Opoku-Agyemang as the Running Mate for the party’s flag bearer, John Dramani Mahama, in the 2024 presidential elections.

    Recognized for her distinguished academic career and leadership roles, Professor Opoku-Agyemang has served as Minister for Education and holds the distinction of being the first female Vice-Chancellor of the University of Cape Coast, solidifying her status as a trailblazer for women in leadership in Ghana.

  • Details of incidents leading to John Kumah’s death revealed

    Details of incidents leading to John Kumah’s death revealed

    Deputy Finance Minister Dr. John Kumah has passed away today, Thursday, March 7, 2024.

    According to reports, he collapsed in his office and was swiftly transported to a hospital for medical treatment. Subsequently, due to a decline in his condition, he was flown out of the country.

    Mr. Kumah, who served as the Member of Parliament for Ejisu in the Ashanti Region, was 45 years old at the time of his death.

    Profile

    Hon. Dr.  John Ampontuah Kumah was a Lawyer and an Entrepreneur with over fifteen (15) years’ experience in leadership, creativity, innovation and resourcefulness in creating jobs, and supporting youth development.


    As the first Chief Executive Officer for the National Entrepreneurship and Innovation Programme (NEIP), he successfully positioned the NEIP as the enabler of the Entrepreneurship Ecosystem in Ghana. Under his leadership, the programme trained 7,000 startups in 2018 under the Presidential Business Support Programme and supported 1,350 beneficiaries with funds.   


    Prior to working for government, Hon. Kumah was the founding member and Managing Partner of Aduaprokye Chambers, a law firm. He also worked as the founder of Majak Associates Ltd, a building and construction company. 


    In November 2020, Hon. Dr. John Ampontuah Kumah received a Doctorate in Business Innovation from the Swiss Business School in Switzerland. Before then, he had acquired a Masters in Applied Business Research, at the same Business School in 2019.


    His rich educational background includes a Post Graduate Diploma in Applied Business Research in 2019 at Nobel International Business School (NIBS). In 2009, he had an Executive Masters degree in Business Administration (Finance), from the Ghana Institute of Management and Public Administration (GIMPA).


    It all began at the University of Ghana, where he earned a Bachelor of Arts degree in Economics with Philosophy, a Bachelor of Art Degree (Law) LLB in 2011 and a Professional Law Certificate from the Ghana School of Law in 2013. He was admitted to the Ghana Bar in 2013.


    As an Entrepreneur by birth, a Lawyer by Profession, a Politician by Choice, a Preacher by Divine Calling, he sees none of these as an accident, but a call to serve humanity.


    He is a family man with six children, and married to Apostle Mrs. Lilian Kumah. 

    More soon…….

  • Public purse is not burdened by Free SHS policy – Deputy Finance Minister

    Public purse is not burdened by Free SHS policy – Deputy Finance Minister

    The Deputy Finance Minister, Dr. John Kumah, has debunked speculations about the government’s Free Senior High School (Free SHS) policy burdening public purse.

    He clarified that the expenditure on Free SHS is not a significant factor compared to the country’s overall budget and highlighted that the real concern is the nation’s debt.

    In a recent interview before the 2023 mid-year budget review, Dr. Kumah emphasized that the allocation for Free SHS in the 2023 budget was GH¢2.9 billion, while the entire appropriation for the year amounted to GH¢228 billion.

    “It’s not true that Free SHS is a huge elephant in the room. The allocation for Free SHS in the 2023 budget was GH¢2.9 billion, and the entire appropriation for the year was GH¢228 billion. You cannot tell me that if you are spending GH¢2.9 billion out of GH¢228 billion, that is the elephant in the room. And this is covering over 1.3 million Ghanaian children. The elephant in the room is our debt, the interest payments we made.

    “The impact and benefits of Free SHS go to the core of the vulnerable and, of course, the future of the human resource of our country. And for me, that is non-negotiable,” he stated.

    He argued that spending GH¢2.9 billion out of GH¢228 billion could not be considered the “elephant in the room.” Moreover, he stressed that the Free SHS program was instrumental in benefiting over 1.3 million Ghanaian children and was crucial for the vulnerable sections of society.

    Addressing the importance of Free SHS, Dr. Kumah underlined its significance for the future human resource of the country and asserted that it was a non-negotiable priority. He also reassured the public of the government’s dedication to achieving growth despite fiscal constraints, with the aim of easing the burden on ordinary citizens.

    The Finance Minister also defended the Free SHS initiative, emphasizing the moral obligation to provide access to education for every Ghanaian child.

    However, one of the key challenges faced by some schools is related to feeding, with limited funding and supply constraints affecting their ability to provide adequate meals for students. This has raised concerns that certain schools might have to consider shutting down if these issues persist.

  • DDEP: There has been no haircuts – John Kumah

    DDEP: There has been no haircuts – John Kumah

    The Deputy finance minister, John Kumah, has said that there has been no haircut as far as the Domestic Debt Exchange Programme (DDEP) is concerned.

    According to him, the debt exchange programme was voluntary and not compulsory.

    He noted that “there has been no haircut in the successful execution of the debt exchange programme and it has remained voluntary from day one until now.”

    The deputy finance minister linked the country’s current economic crisis to the COVID-19 pandemic and the Russia-Ukraine war.

    He made the assertion when the finance minister appeared before parliament to present the details of the debt exchange.

    John Kumah however reiterated that pensioners who did not sign on to the programme are exempted.

    He further noted that the government will pay maturing coupons and the principals on bonds.

    “As we speak today, about 85% of bonds have been migrated unto the new bond market,” while adding that the success rate has paved way for further negotiations to continue with the IMF.

  • Treasury bills will not be affected by debt restructuring – Deputy Finance Minister

    The Deputy Finance Minister, Abena Osei Asare has said that investments in Treasury bills will not be affected by the debt restructuring announced by the Finance.

    Addressing the press after the 2023 Budget, Madam Asare noted that principals of domestic bondholders or instruments will also not be touched.

    This, she said has been confirmed during the budget presentation by the Finance Minister, Ken Ofori-Atta.

    “T-bills are out of the perimeter of the debt operations. It has been stated clearly,” she assured.

    She, however, stated that at the end of the debt restructuring, the Ministry will come out with structures and terms that will ensure that the market corrects itself so that a robust country is built.

    The Finance Minister during the 2023 Budget reading, announced plans to restructure Ghana’s debt.

    According to him, government will suspend interest payments for domestic bondholders and impose a 30% haircut on foreign bonds.

    In the meantime, the Deputy Finance Minister, John Kumah in an interview with JoyNews explained that under the debt restructuring arrangement, domestic bondholders will receive zero interest for 2023.

    In the second year, the domestic bondholders will receive only 5% interest and a further 10% interest in the third year. Domestic bondholders can only expect to start receiving their full interest in 2026.

    According to Mr Kumah, details of the restructuring will soon be placed before investors.

    Meanwhile, the Minority Spokesperson on Finance, Dr Cassiel Ato Forson said the Minority side will reject any attempt by government to pass a law to legalise the restructured arrangement.

    He said President Akufo-Addo was dishonest when he announced ‘no haircut.’

  • Government withdraws Tax Exemptions Bill from Parliament

    The government has withdrawn the Tax Exemptions Bill 2021 laid in Parliament in November last year, according to the Ghana News Agency.

    Although the Bill has been withdrawn, Deputy Finance Minister, John Kumah, will in the coming days re-lay it before the House for approval.

    The Tax Exemptions Bill was announced by the government in the 2017 Budget Statement and Economic Policy. 

    Attempts to have it approved in 2020 were unsuccessful as the 7th Parliament got dissolved before the approval processes were concluded.

    On November 16, 2021, the Tax Exemption Bill 2021 was laid in Parliament by Minister for Parliamentary Affairs and Majority leader, Osei Kyei-Mensah-Bonsu, on behalf of Finance Minister Ken Ofori-Atta.

    Second Deputy Speaker, Andrew Amoako Asiamah, then referred the bill to the Finance Committee for consideration and report.

    The Bill is to regulate government approval of tax exemption for companies and related matters.

    To encourage private investment, a number of tax exemptions are provided to foreign and national companies by the government after the companies first apply to the Finance Ministry.

    But it is reported that the state loses huge amounts of money doing so.

    The Deputy Finance Minister revealed that in 2011, tax exemption cost the country about US$ 2.4 billion, 6.13 percent of Gross Domestic Product (GDP).

    “Failure to take action on exemptions is therefore costing the nation dearly and prompting the resort to tax hikes to plug revenue shortfalls,” he said.

    GNA reports that the International Monetary Fund indicated that Ghana,  in 2013, lost 5.2 percent of its GDP to tax expenditures amounting to USD$ 2.5 billion.

    The bill when approved is expected to address these challenges being faced by the country.

    Meanwhile, a senior lecturer at the University of Ghana Business School, Prof Godfred Bokpin, has urged the government to speed up the passage of the tax exemptions bill.

    “The biggest threat to our revenue mobilisation is tax exemption. In less than 15 years… Ghana has given away about half of its revenue base through exemptions; for me, it is the biggest leak in our economic structures,” he was quoted by asaaseradio.com.

    Source: The Independent Ghana