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Parliament approves $10.4m tax waiver for TCS

Parliament has approved a tax waiver of $10.4 million for Tata Consultancy Services (TCS) Limited to facilitate the implementation of the Integrated Tax Administration System (ITAS) project, a major component of Ghana’s revenue modernisation agenda.

The ITAS initiative, part of an IMF-supported programme, was initially contracted under the previous NPP administration. TCS, working in partnership with local technology firm IPMC, is expected to take over aspects of domestic tax mobilisation from 2026, introducing digital systems aimed at improving efficiency and compliance.

The approved waiver covers a 20 per cent withholding tax and Value Added Tax (VAT) on the company’s income during the project period.

Officials say the incentive is intended to ease operational costs and ensure a smooth deployment of the nationwide tax administration platform.

Presenting the request to Parliament, Finance Minister Dr Cassiel Ato Forson said the Mahama-led government successfully renegotiated the original agreement, achieving savings of $9 million for the state.

He noted that the revised terms reflect government’s commitment to prudent fiscal management and its determination to strengthen public-private partnerships in the revenue sector.

The ITAS project is expected to enhance data integration, broaden the tax base, and improve overall revenue performance when it becomes operational.

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