John Mahama
The Opposition National Democratic Congress (NDC) has unveiled its 2024 manifesto, promising to scrap “draconian taxes” and ease hardships.
However, a closer examination of their previous manifesto promises on taxation reveals a pattern of unfulfilled promises.
Over the weekend, former President John Dramani Mahama, speaking at the manifesto launch in Winneba, said the next NDC government will scrap the following “draconian taxes” within its first 90 days in office to alleviate hardships and ease the high cost of doing business: E-levy, COVID levy, 10% levy on bet winnings, and emissions levy.
To further ease hardships, the NDC pledged to:
– Review import duty on vehicles and equipment imported into the country for industrial and agricultural purposes.
– Apply the Price Stabilization and Recovery Levy on fuel to cushion consumers.
– Rationalize fees at ports to reduce the burden on importers and Ghanaians.
– Undertake a comprehensive reform of Ghana’s VAT regime to provide relief for households and businesses.
According to the NDC, this reform includes:
– Reversing the decoupling of GETFund and NHIL from VAT.
– Upwardly adjusting the VAT registration threshold to exempt micro and small businesses.
– Repealing the law imposing VAT on domestic electricity consumption.
– Reversing the VAT flat rate regime.
To enhance revenue mobilization, the NDC promised to:
– Broaden the tax base and plug leakages in tax collections.
– Review the tax exemption regime to promote transparency, economic growth, technology transfer, and job creation.
Interestingly, in 2012, the NDC, then in power, promised to reduce taxes and alleviate the burden on Ghanaians.
However, instead of fulfilling this promise, they introduced new taxes, including the Value-Added Tax (VAT) on banking services.
This move was widely criticized by businesses and individuals alike, who felt it added to their financial woes and cost of doing business.
Fast-forward to 2016, the NDC, again in power, vowed to review the tax exemption regime to promote transparency and economic growth.
However, nothing changed, as the tax exemption regime remained opaque, and Ghanaians continued to bear the brunt of taxation.
Now, in their 2024 manifesto, the NDC is making similar promises again, pledging to scrap the Electronic Levy (E-levy), COVID levy, and other taxes within 90 days of assuming office.
However, a review of their previous manifestos reveals a pattern of broken vows.
In 2012, they promised to reduce taxes but increased VAT instead. In 2016, they vowed to review the tax exemption regime, but nothing changed.
As the country heads to the polls, Ghanaians must scrutinize the NDC’s manifesto promises and hold them accountable for their past actions.
The truth lies in the NDC’s track record, not their manifesto promises.
– BY Daniel Bampoe