BY Issah Olegor
Controversy is brewing in Parliament following reports that Finance Minister Cassiel Ato Forson has requested a $10 million withholding tax waiver for Tata Consultancy Services (TCS), an Indian technology company, in relation to Ghana’s Integrated Tax Administration System (ITAS) contract.
The request, part of the addendums to President John Dramani Mahama’s 2026 budget, has been referred to the Finance Committee for consideration.
The move has sparked concern among observers who say the proposed waiver raises questions about fairness, fiscal responsibility, and data sovereignty.
Analysts point out that local companies, such as Accra-based Axon Information Systems—which has been responsible for domestic revenue mobilization since 2021 and helped the Ghana Revenue Authority (GRA) consistently to exceed its targets—have never received comparable tax exemptions.
Critics are questioning why an Indian firm would receive preferential treatment for a contract valued at approximately $28 million, especially when the company is not financing the project itself.
The ITAS contract, originally awarded during the tenure of former GRA Commissioner Julie Essiam, was criticized by the opposition NDC including Ato Forson, then Ranking Member for Finance for a number of reasons, including the perceived lack of local content and a controversial bidding process.
According to public records, TCS faced objections from the Public Procurement Authority on two occasions, citing insufficient track record and failure to meet local content requirements.
Similarly, KPMG reportedly scored TCS lowest among the top three companies shortlisted for the ITAS project.
Experts warn that handing over Ghana’s tax data to TCS could pose risks, especially as the company has reportedly faced legal issues abroad, including a fraud fine in the United States in 2024.
President Mahama has recently highlighted the success of Ghanaian-developed AI algorithms in managing port operations, raising further questions about the rationale for awarding a key national tax project to a foreign firm with a reportedly problematic solution history.
