Three Minority Members of Parliament (MPs) have sued the Ghana Revenue Authority (GRA) and the Finance Ministry over plans to grant substantial tax waivers to 42 companies under the 1 District 1 Factory (1D1F) Initiative.

The MPs are calling for the Supreme Court to suspend these tax waivers, asserting that they are not in the country's best interest.

The MPs—Bernard Ahiafor (Akatsi South), Kwame Agbodza (Adaklu), and Emmanuel Armah-Kofi Buah (Ellembelle)—argue that the tax waivers violate Article 174 of the 1992 Constitution, rendering them unconstitutional.

They are asking the Supreme Court to declare the waivers null and void.

“It appears Article 174 of the Constitution is being violated. The Supreme Court has exclusive jurisdiction to interpret the Constitution, and any citizen who believes a portion is being contravened can seek interpretation and declaration at the Supreme Court,” Mr. Ahiafor noted.

“That is exactly what we have done in this circumstance. We’re seeking relief against the waivers that are being implemented and those that are yet to be implemented, he noted further.

The dispute arose on May 20 when the government published a list of companies set to receive tax waivers under the 1D1F initiative.

In 2021, the Ministry of Finance began the process to secure approximately USD335 million in tax exemptions for these companies.

The Exemptions Act, 2022 (Act 1083), was presented in Parliament by former Finance Minister Ken Ofori-Atta.

Among the beneficiaries, Sentuo Oil Refinery Limited stands out with the highest tax waiver, amounting to USD164.6 million.

The MPs argue that such significant tax breaks are detrimental to Ghana and have called for judicial intervention to stop the waivers.

They believe these exemptions could have severe negative impacts on the country's economy and governance.