https://www.myjoyonline.com/ofosu-kwakye-appeals-for-tax-exemptions-to-sustain-struggling-state-media/-------https://www.myjoyonline.com/ofosu-kwakye-appeals-for-tax-exemptions-to-sustain-struggling-state-media/

Minister of State for Government Communications, Felix Kwakye Ofosu, has appealed to the Ministry of Finance and the Ghana Revenue Authority (GRA) to grant tax exemptions to state-owned media houses to sustain their operations and uphold their public service mandate.

Addressing Parliament, Mr Ofosu called on lawmakers to support this push, arguing that state media institutions such as Graphic Communications Group Ltd (GCGL), Ghana Broadcasting Corporation (GBC), New Times Corporation, and the Ghana News Agency (GNA) are weighed down by high import duties on critical operational equipment and inputs.

These organisations provide an essential service to the public. Yet, they are overwhelmed by the cost of importing inputs critical to their operations,” he said. “For example, GCGL spends about GH¢4.5 million annually on import duties for items such as newsprint, inks, and printing equipment, which are all paid for in foreign currency.”

He noted that although these institutions are state-owned, they receive little direct financial support from the government and must operate under strict public sector laws, including the Public Financial Management and Public Procurement Acts, which limit their operational flexibility.

Digital Pressures and Bureaucratic Hurdles

Mr Ofosu stressed the need for fresh capital investments, particularly for digital transformation and diversification, especially for GCGL, which generates all its revenue internally. GCGL also bears additional costs through its subsidiary, GPak.

He was responding to concerns raised in Parliament by Minority Leader Alexander Afenyo-Markin and Gbawe-Weija MP Jerry Ahmed Shaib over the operational difficulties facing state-owned media.

Mr Ofosu revealed that GBC, like GCGL, faces similarly steep import duties on critical equipment, including transmitters, while the Ghanaian Times struggles to procure modern printing machinery.

GBC’s Mounting Debts and Ageing Infrastructure

Providing further insight into GBC’s challenges, Mr Ofosu disclosed that the broadcaster is saddled with a legacy electricity debt of GH¢18.8 million—GH¢13.77 million owed to the Electricity Company of Ghana and GH¢5.11 million to the Northern Electricity Distribution Company.

The debt, he explained, was incurred during years when the government covered power bills for co-located national security institutions and other state agencies. Once those payments ceased, GBC was left with the outstanding arrears. While it continues to pay current bills, GBC has not received significant capital investment from the government in over two decades. Its infrastructure remains outdated, with past retooling efforts largely funded through internal revenue and foreign aid, particularly from Japan.

Limited Coverage, High Operating Costs

GBC’s constitutional obligation to operate in all regional capitals has become more difficult following the creation of six new regions. Mr Ofosu noted that a previous agreement between GBC and the Ministry of Finance—under which GBC ceded a valuable land parcel near Jubilee House in exchange for funds to build regional FM stations—remains unfulfilled by the Ministry.

He described GBC’s continued reliance on a nearly 20-year-old analogue outside broadcasting (OB) van as a critical challenge. For national or international coverage, the broadcaster often rents OB vans at a cost of up to $15,000 per day.

“This situation is not sustainable and highlights the broader resource constraints undermining GBC’s ability to compete and function with autonomy, efficiency, and relevance in today’s media landscape,” Mr Ofosu said.

He assured Parliament of his commitment to engage the Ministry of Finance and the GRA to find lasting solutions and expressed hope that the House would support any formal request for tax relief.

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