It is calculated that about S2.27 billion amount loses every year in Ghana through corporate tax incentives.
Tax Justice Network-Africa (TJN-A) and ActionAid reported that the negative impact of tax incentives included undue advantages to multinational and big firms at the expense of domestic and smaller industries.
It also said that the development promotes corruption by special treatment to be given to particular companies.
More reports said the West African countries lose US$9.6 billion of profit every year due to tax incentive to foreign companies.
According to the report three main countries Nigeria, Ghana and Senegal are losing $5.8 billion every year by granting of corporate tax incentives.
Cocoa more than the production target
It stated that Nigeria loses an estimated $2.9 billion, Ghana around $2.27 billion and Senegal loses around $638.7 million.
The government of West Africa provides corporate tax incentives believing that they attract investment of foreign companies which will create jobs but it stated that this is harmful and unfounded.
Alvin Mosioma Executive Director of Tax Justice Network- Africa said extractive companies would be investing with tax incentives or without tax incentives.
The extractive companies do not employ local force at large extent, unlike manufacturing.
The report called on the government of West Africa to review the tax incentives.
Senegal has continued to raise tax incentive but the employment has failed to increase in its areas.
ActionAid Nigeria’s country director, Ojobo Atuluku has stated that the West African governments are losing billions of dollars every year that is needed to improve education, infrastructure and health care.
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