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El Samuels: MBN360
Ghana’s Parliament has given the green light to a $10.4 million tax waiver for Tata Consultancy Services Limited, the Indian company behind the Integrated Tax Administration System (ITAS) project. This move is expected to facilitate the smooth rollout of ITAS, a flagship component of Ghana’s domestic revenue mobilization reforms supported by the International Monetary Fund (IMF).
The approved exemptions include a full waiver of the standard 20% withholding tax on payments made to TCS and a complete exemption from Value Added Tax (VAT) and National Health Insurance Levy (NHIL) on imported equipment, software licenses, and professional services.
Finance Minister Dr. Cassiel Ato Forson highlighted that the Mahama administration’s renegotiation of the deal has saved the country $9 million, showcasing the government’s commitment to fiscal prudence and effective public-private collaboration.
The ITAS project is expected to increase Ghana’s domestic tax revenue-to-GDP ratio by at least 2-3 percentage points within the first three years and reduce tax compliance costs for businesses by up to 40% through e-filing and automated processes. TCS and IPMC will manage day-to-day domestic tax administration operations for an initial period of ten years, with built-in performance metrics and knowledge-transfer clauses to ensure Ghanaian staff eventually take full control. The tax exemption instrument is expected to receive presidential assent within days, paving the way for TCS and IPMC to begin site preparation at the new national data center in Accra.
