Minister of Finance Dr Cassiel Ato Forson discontinues 1D1F tax exemption policy
The Minister of Finance, Dr Cassiel Ato Forson, has announced the government’s plan to discontinue the tax exemption policy under the One District, One Factory (1D1F) initiative, citing widespread abuse under the previous Akufo-Addo administration.
Addressing Parliament on Wednesday, March 26, 2025, Ato Forson said: “As finance minister, I’m not going to continue with the 1D1F tax exemption because the evidence before this House suggests it has been abused badly.”
While acknowledging the industrialisation and economic growth objectives of the initiative, he noted that the exemptions had been misused, undermining their intended impact.
The minister, however, assured that the government remains committed to supporting local industries and would explore alternative measures that ensure greater accountability.
“We will support genuine businesses that contribute to our economy, but we must put an end to policies that create loopholes for exploitation,” he added.
In 2021, the Ministry of Finance initiated processes to secure approximately $335 million in tax exemptions for 42 companies under the 1D1F programme.
Launched by the Akufo-Addo government, the 1D1F initiative was designed to drive manufacturing and value addition, shifting Ghana’s economy away from raw material exports, towards industrialisation and processed goods exports.
With the new policy direction, the government is expected to introduce more stringent oversight mechanisms to ensure efficient resource allocation and enhanced economic benefits from industrialisation initiatives.
SP/AE
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