The Executive Director of the Centre for Policy Studies, Dr. Adu Owusu Sarkodie, has cautioned against granting tax rebates to firms solely because they operate multiple shifts under Ghana’s 24-Hour Economy initiative.
The government has proposed 25% and 50% corporate tax rebates for companies running two-shift and three-shift systems as part of the 24-Hour Economy initiative meant to encourage around-the-clock production. Dr. Sarkodie argues this incentive system is misguided and risks draining public revenue without guaranteeing real productivity or job creation.
Speaking at an event reviewing the initiative, the economist acknowledged the policy has good intentions to stimulate production, employment, and productivity. However, he said shift patterns alone should not determine eligibility for tax subsidies.
Dr. Sarkodie explained that working longer hours does not guarantee higher output or efficiency, especially when businesses struggle with unreliable power, low worker morale, and obsolete machinery. He warned that without clear benchmarks tied to productivity, employment outcomes, and sectoral impact, the proposal could open the door to abuse and inefficiency.
“If you are saying that you are going to grant corporate income tax rebates of 25% and 50% to firms operating two or three shift systems, respectively, we are of the view that the shift pattern alone does not constitute a sufficient basis for determining eligibility for tax subsidies,” Dr. Sarkodie stated.
He recommended the incentive design should be based on productivity, employment outcomes, and sectoral impact to ensure fiscal efficiency and policy coherence. Experts have cautioned that Ghana’s tax exemptions and rebates already cost the state billions of cedis annually in lost revenue, and adding a blanket incentive tied merely to working hours could worsen fiscal leakages.
Dr. Sarkodie praised the 24-Hour Economy Secretariat for what he called a good job done halfway, but urged policymakers to ensure the incentive framework is results-oriented and fiscally sustainable.
