Dr. Mahamudu Bawumia
The Flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has delivered bold solutions geared towards reviving the country’s economy through the implementation of several social and economic interventions.
Unveiling the NPP’s 2024 manifesto in Takoradi, the Western Region yesterday, Dr. Bawumia said his economic interventions would create sustainable growth, support small businesses, and foster innovative and decent jobs for the youth.
The launch of the manifesto themed, “Selfless Leadership, Bold Solution for Jobs and Business”, attracted thousands of supporters of the NPP to the Ghana Secondary Technical School (GSTS) in Takoradi.
He promised a simple, citizen-friendly, and business-friendly flat tax system as part of the tax reform to be introduced should he be elected as president on December 7.
According to him, the flat tax system aims to broaden the tax base, reduce compliance costs, and increase revenue collection.
The party estimates that approximately GH¢50 billion in revenues were not collected in 2023 due to a cumbersome tax system.
“Estimates suggest revenues amounting to 13% of GDP, or some GH¢50 billion, in 2023, were not collected because people are outside the tax net. Many individuals and businesses find our tax system cumbersome and confusing.
“We want a tax system that is easy to understand, easy to comply with and easy to enforce, softer on the taxpayer, and that is not subject to so much discretion,” Dr. Bawumia stated.
The NPP flagbearer said the key features of the tax reform include a flat tax rate for individuals and businesses, appropriate exemption thresholds to protect the poor, simplified corporate tax and VAT regimes, merging of levies into a single line item levy, tax digitalisation and electronic filing, and faceless assessments for transparency and accountability.
Dr. Bawumia said the NPP is also promising to support businesses through investment tax credits for startups in strategic sectors, a flat rate system of duties for importers, and harmonised port charges.
“To start the new tax system on a clean slate, my government will provide a tax amnesty that is a complete exemption from the payment of taxes and the waving of associated interest and penalties up to a certain year to individuals and businesses for failures to file taxes in previous years, so that everyone will start afresh on a clean slate.
“In return, my government will expect the beneficiaries of this most significant gesture and tax savings to be directly used in creating jobs. Our ultimate goal is to move Ghana to a lower tax regime with broader coverage and to stimulate greater economic activity and generate more revenue to the state for this to succeed, tax digitalisation will be implemented across all aspects of the tax administration,” he asserted.
He continued, “Everyone will be required to file a very simple tax return electronically through their mobile phone or a computer.”
“My government will be for business, because, true to our philosophy, I believe the business of government is to empower business to deliver for society. We will therefore support the growth of businesses by the following policies.
“We will incentivise Ghanaian startups in selected strategic sectors with investment tax credits for the first three years of their operations. A flat rate system of duties for all importers will be implemented, bringing predictability and stability on prices of imported goods.
“We will harmonise port charges to align with the charges in competing regional ports, particularly Togo. Duties in our ports will not be higher than the duties in Lome, Togo,” the NPP flagbearer indicated.
He stated that the next NPP administration will use government procurement policies to stimulate industrial expansion, promote local goods and services, and provide a shift in electricity tariffs to support industries and businesses.
Dr. Bawumia emphasised the party’s commitment to delivering broad-based prosperity and transforming Ghana.
He highlighted the NPP’s track record, citing achievements in various sectors, and promised to build on these successes to take Ghana to the next level of development.
From Emmanuel Opoku, Takoradi