Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), announced his intentions to make significant changes to the National Service scheme and tax system if elected as President.
Addressing supporters and party leaders, Bawumia stated that under his government, National Service would no longer be mandatory for graduates seeking immediate employment opportunities after completing their tertiary education.
Bawumia expressed the need for an updated approach to the current National Service scheme to better align with the job demands of graduates.
He proposed that individuals who secure employment after completing their education should be exempted from National Service.
“Ladies and gentlemen, to assist our youth in securing jobs, it is time to reevaluate our current National Service scheme. My government will suggest that those who can secure employment after completing their education be exempted from National Service,” Bawumia declared.
Furthermore, Bawumia highlighted the importance of simplifying the tax system and creating a business-friendly environment.
He pledged to introduce a flat tax regime that is easy to understand and implement for individuals and Small and Medium Enterprises (SMEs).
The flat tax would be a percentage of income, with exemption thresholds in place to protect low-income earners.
“With the introduction of the new tax regime, completing the tax return should take only minutes! We will also simplify the complex corporate tax system and VAT regime,” Bawumia added.
In addition to the proposed changes to the tax system, Bawumia unequivocally stated his opposition to the tax on electronic financial transactions, commonly known as the e-levy. Introduced in 2022, this tax has been a subject of heated debate. Bawumia affirmed that if elected as President, he would abolish the e-levy.
“To promote a digital and cashless economy, we must encourage the use of electronic payment channels. To achieve this, my administration will not impose taxes on digital payments. Therefore, the e-levy will be abolished,” Bawumia declared.
As part of his new tax regime, Bawumia also plans to abolish the emission tax, tax on betting, and the proposed 15% VAT on electricity tariffs, if it is in existence by January 2025.
Dr. Mahamudu Bawumia’s proposals regarding National Service and tax reform aim to create a more student-friendly and business-friendly environment in Ghana. With the upcoming elections, these announcements provide insight into his vision and priorities for the country’s future.
By Vincent Kubi