Parliament on Tuesday adopted a report granting a waiver of $10.46 million, representing 20 percent withholding tax, for Tata Consultancy Services Limited in respect of a software application agreement.
The tax exemption, signed between the Ghana Revenue Authority (GRA) and Tata Consultancy Services, was re-negotiated by the government to secure savings of $9 million for the country, according to the Minister of Finance, Dr Cassiel Ato Forson.
The report was laid before the plenary by Mr Isaac Adongo, a member of the Finance Committee of Parliament.
Debate on the adoption of the tax exemption saw sharp divisions, with the Minority Caucus, led by Mr Frank Annor-Dompreh, Minority Chief Whip, opposing the waiver.
He argued that the National Democratic Congress (NDC), while in opposition, had resisted 47 tax waivers presented to Parliament in 2024, and urged the ruling party to remain principled by rejecting the current exemption.
Responding, Dr Ato Forson explained that the government was seeking to bring legality to the agreement by submitting it for parliamentary approval.
He further noted that the International Monetary Fund (IMF) had endorsed the arrangement within its conditionalities, ensuring strict compliance and transparency.
The adoption of the report paved the way for implementation of the tax waiver, which government insists will benefit Ghana through cost savings and adherence to international financial standards.
GNA