The Ghanaian Parliament on Tuesday approved a report granting a $10.46 million waiver, equivalent to 20 per cent withholding tax, for Tata Consultancy Services (TCS) in relation to a software application agreement. The waiver was negotiated between the Ghana Revenue Authority (GRA) and TCS, with the government securing savings of $9 million for the country, according to the Minister of Finance, Dr. Cassiel Ato Forson.
The report was presented to the plenary by Mr. Isaac Adongo, a member of Parliament’s Finance Committee. During the debate on the adoption of the tax exemption, strong divisions emerged between lawmakers. The Minority Caucus, led by Mr. Frank Annor-Dompreh, Minority Chief Whip, opposed the waiver.
Mr. Annor-Dompreh argued that the National Democratic Congress (NDC), while in opposition, had resisted 47 tax waivers presented to Parliament in 2024. He urged the ruling party to remain consistent and principled by rejecting the current exemption for TCS.
In response, Finance Minister Dr. Ato Forson explained that the government’s intention was to ensure legality and transparency by submitting the agreement to Parliament for approval. He added that the arrangement had been endorsed by the International Monetary Fund (IMF) under its conditionalities, highlighting compliance with international financial standards.
Dr. Forson also emphasised that the waiver would provide cost savings for the government while maintaining adherence to proper regulatory procedures. “This process ensures full transparency and aligns with Ghana’s commitment to international fiscal norms,” he said.
Following the parliamentary adoption of the report, the tax waiver can now be implemented. Government officials maintain that the waiver will benefit Ghana by reducing costs related to the software agreement while ensuring compliance with global financial practices.
The decision reflects ongoing efforts by the Ghanaian government to balance fiscal prudence with the need to attract and formalize international business arrangements. It also underscores Parliament’s role in scrutinizing tax agreements to guarantee transparency and value for money for the country.
