The Vice President and Flagbearer of the New Patriotic Party (NPP), Dr Mahamudu Bawumia has reiterated that businesses and individuals will have a clean tax slate under his Presidency in 2025, to usher in a new tax system.
During his maiden address to the nation as flagbearer of the NPP, Dr. Bawumia, announced that his government will introduce a new friendly tax regime aimed at boosting businesses and making the private sector competitive.
At a stakeholder interaction with members of the Ghana National Chamber of Commerce and Industry in Accra, on Wednesday, Dr Bawumia stressed on the need for a new tax regime to aid his vision of carrying the private sector along, under his government.
“Our tax system has been the same since independence and it has not helped us, so we have to change it,” Dr. Bawumia said.
“We are going to have a new tax system. It is going to be a flat tax system to ensure competitiveness and business friendliness. To usher in the new tax regime, there will be tax amnesty for individuals and businesses 2025 under my Government. It will be a clean slate for everyone for us to start afresh,” he added, amidst cheers from the business community.
As part of Dr. Bawumia’s new tax system, he also stated that, beginning 2025, under his Presidency, there will be no longer human interface in tax audits.
“We are also going to have a faceless tax audits to prevent harassment of businesses and corruption, and audit of any company cannot be more than once in 5 years unless there is a reason. This is what other countries are doing,” he added.
“My vision is to make Ghana one of the most tax competitive countries in the world. I have studied many tax systems and recently, I went to Estonia which is one of the most digitised and competitive tax countries in the world, to study their tax system. I believe it is possible for us to achieve that in Ghana and even be better.
Dr. Bawumia also reiterated his pledge to abolish a number of taxes as President, including taxes on electronic financial transactions. “I will abolish certain taxes like the e-levy as I have said, because we want to encourage a cashless system.”
For importers, Dr. Bawumia also committed to his pledge of instituting a flat rate for the importation of spare parts as well as benchmarking Ghana’s port charges with Togo, to be competitive. “We can even be lower, to make Ghana the most competitive,” he said.
The Chamber, while making some suggestions to the Dr. Bawumia also commended him for a number of his policies, and welcome, especially, his new tax regime of flat tax and tax amnesty for businesses and individuals, as well as his pledge makes the private sector the driving force of the Ghanaian economy.
“The Chamber supports your position to amend the Fiscal Responsibility Act to add fiscal rule that requires that budgeted expenditure in any year does not exceed 105% of the previous year’s tax revenue.”
“As indicated in your vision, the Chamber also acknowledged the need for government to partner with the private sector to provide public infrastructure. This will incentivise private businesses to contribute to infrastructure provision and reduce pressure on limited government revenue.”
The Chamber also welcomed Dr. Bawumia’s proposals to partner the private sector for infrastructure delivery, a new tax regime to enhance businesses including amnesty for businesses and individuals, and also commended him for spearheading the digitalisation of Ghana, which the Chamber noted, has impacted positively on businesses and the country.
The Chamber also made a number of proposals to Dr. Bawumia to consider and the Vice President welcomed them, stating that they align with his vision.
