Minority Caucus Dismisses Claims of Tax Incentive Abuse Under 1D,1F Initiative

The Minority Caucus in Parliament has disputed allegations made by the Majority Leader, Mr Mahama Ayariga, that the previous New Patriotic Party (NPP) government misused tax benefits for companies under the 'One District, One Factory' (1D,1F) program. The Minority's position was expressed by Mr Michael Okyere Baafi, an NPP MP and former Deputy Minister for Trade and Industry, who defended the government's facilitation of tax incentives for businesses in the 1D,1F initiative. He explained that the program was designed to support both greenfield and brownfield companies, offering a five-year tax holiday to new businesses and tax waivers for companies that imported materials for production.

Key Takeaways:

• The Minority Caucus has disputed claims by the Majority Leader that the previous NPP government misused tax incentives for companies under the 1D,1F program, with Mr Michael Okyere Baafi arguing that the government provided standardised arrangements for companies to access funds.
• The 1D,1F initiative was a two-tier program that supported both greenfield (new) and brownfield (existing) companies, offering various tax benefits to encourage production and job creation.
• The government facilitated tax incentives for businesses in the program, including a five-year tax holiday for new companies and tax waivers for companies that imported materials for production.
• The Minority's position contradicts the Majority Leader's statement that most companies under the 1D,1F program abused tax incentives, which Mr Baafi described as "getting it all wrong".
• The programme aimed to create jobs and support businesses across all 261 districts of the country, but the Majority Leader claimed that most companies were concentrated in the southern sector.

Statistics:

• 1D,1F is a two-tier program; greenfield companies receive a five-year tax holiday.
• Brownfield companies receive tax waivers for importing materials for production.
• 261 districts in the country were intended to benefit from the 1D,1F initiative.

Sources:

• Ghana News Agency (July 18, 2025)
• Speech of Mr Mahama Ayariga, Majority Leader, on the floor of Parliament (exact quote and date not provided)