Approval of a $10.4m tax waiver for TCS exposes NDC’s hypocrisy — Minority

The approval of a $10.4 million tax waiver for Tata Consultancy Services (TCS) by Parliament has provoked a fierce response from the Minority, who accused the governing National Democratic Congress (NDC) of hypocrisy and abandoning principles they once championed in opposition.

The approval ignited a political firestorm, with the Minority accusing the NDC government of blatant hypocrisy, double standards and a dramatic reversal of long-held positions on tax exemptions.

The waiver, granted to facilitate the implementation of the Integrated Tax Administration System (ITAS), has become a symbol of the NDC’s shifting principles after years of aggressively opposing similar exemptions requested under the former NPP government.

A Project Once Criticised

The ITAS agreement, originally signed under the NPP administration, is part of an IMF-supported programme to overhaul the tax administration.

Tata Consultancy Services, working with local partner IPMC, is expected to take charge of Ghana’s tax automation processes from 2026.

To support the rollout, government requested that Parliament grant Tata a relief from the 20% withholding tax and Value Added Tax (VAT) on its income—amounting to more than $10 million in exemptions.

Minority Whip Leads Parliamentary Opposition

Minority Chief Whip, Frank Annoh-Dompreh, led the charge on the floor of Parliament, describing the waiver as a breach of principle and an “illegality” the government is attempting to force through.

“I don’t know what you will be telling Ghanaians… Today we are being invited to be part of an illegality—something that you spoke against,” he declared.

Annoh-Dompreh reminded Parliament that the same NDC that now holds power previously opposed similar tax exemptions when requested by the New Patriotic Party (NPP).

The Minority insisted that it cannot stand by silently as government reverses its former position.

Ato Forson’s Past Criticisms 

The Minority also spotlighted Finance Minister Cassiel Ato Forson’s previous rhetoric. As Minority Leader, Forson had condemned the NPP’s pursuit of tax waivers and loans as reckless, insisting such measures would “burden the public purse.”

He also questioned the procurement of a €140 million naval ship, to protect the country’s territorial waters, warning that outgoing governments should not saddle successors with liabilities.

Today, the same minister defends the waiver, arguing that renegotiations saved the state $9 million—a stark contrast to his earlier position.

The Minority condemned this U-turn as a betrayal of the principles that earned the NDC electoral support.

Legal And Procedural Concerns

The Minority questioned whether the request for Parliament’s approval was even lawful.

Citing the Income Tax Act, 2015, Annoh-Dompreh argued that applications for such exemptions fall under the purview of the Commissioner-General of the Ghana Revenue Authority (GRA), not Parliament.

“Let the record reflect that the mighty Minority is opposed to this tax waiver,” he insisted.

“I don’t know what justification you will give to Ghanaians who voted for you massively based on principle. Now you are shying away from the very principle by which you were voted into office. God will judge you.”

Broader Implications

The Minority framed the waiver as symptomatic of a wider governance problem: political expediency overtaking fiscal responsibility.

They argue that such concessions to foreign firms, even for projects as critical as ITAS, set a precedent that undermines domestic revenue mobilization and transfers financial burdens onto ordinary citizens.

Government Defense 

Ato Forson, insists the waiver is necessary to ensure the smooth rollout of ITAS, claiming it modernizes tax administration and ultimately strengthens revenue collection.

Critics, however, see the move as a political volte-face, noting that the same principles the NDC defended in opposition have been conveniently shelved now that the party occupies the majority.