Ghana Parliament Approves 10.4 Million Tax Dollars Waiver for Tata Consultancy Services to Implement ITAS Project
Accra, Ghana – November 2025 — Ghana’s Parliament has officially approved a 10.4 million dollars tax waiver for Tata Consultancy Services (TCS) to facilitate the implementation of the Integrated Tax Administration System (ITAS) — a major government initiative aimed at modernizing the country’s tax collection process.
The tax waiver, which exempts TCS from paying 20% withholding tax and VAT on income, is part of a broader digital transformation strategy within the Ghana Revenue Authority (GRA). The ITAS project is expected to enhance transparency, increase tax compliance, and boost domestic revenue mobilization.
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TCS will execute the project in partnership with local IT firm IPMC Ghana, with a full rollout anticipated by 2026.
Government Justifies Tax Waiver
According to Finance Minister Dr. Cassiel Ato Forson, the current government renegotiated the contract, resulting in a $9 million cost saving compared to the initial agreement signed under the previous administration.
The project is expected to play a critical role in boosting Ghana’s domestic revenue and reducing dependence on external borrowing.
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Conclusion
The approval of the 10.4 million dollars tax waiver for Tata Consultancy Services signals Ghana’s commitment to overhauling its tax system through digital solutions. However, the contradiction between the Finance Minister’s earlier budget declaration and the current decision has raised valid concerns about policy consistency and fiscal discipline.
While the ITAS project promises long-term benefits, ongoing scrutiny, transparency, and local capacity building will be essential to ensuring that the investment truly delivers value for the Ghanaian people.
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He emphasized that the tax exemption will enable the smooth execution of the ITAS system without unnecessary cost barriers, reinforcing the government’s commitment to digital governance and fiscal accountability.
Meanwhile, in his first budget reading in 2025, Dr. Ato Forson emphatically stated that the government would not approve tax waivers, as they place a burden on the public purse — a statement now drawing attention amid the passage of this latest exemption.
Minority Raises Concerns Over Tax Incentive
The tax waiver approval did not go without opposition. Members of the Minority in Parliament criticized the move, labeling it inconsistent with the government’s prior stance on limiting tax exemptions.
Critics argue that while the ITAS project is essential, the size of the tax relief could undermine revenue efforts, especially when the country is under pressure to meet IMF-backed fiscal targets.
What Is the ITAS System?
The Integrated Tax Administration System (ITAS) is a digital platform designed to:
– Streamline tax registration and filing
– Enhance taxpayer services
– Improve tax compliance and collection
– Reduce leakages and fraud within the revenue system
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