The flagbearer of the New Patriotic Party (NPP), Dr Mahamudu Bawumia, says his government will institutionalise “the gold for forex programme” to stabilise Ghana’s exchange rates.
So far, the Bank of Ghana (BoG) has accumulated over five billion dollars worth of gold reserves since 2021 under the domestic gold purchase programme.
He pledged to ensure a business-friendly environment by collaborating with the private sector to construct roads, school infrastructure, hostels and the acquisition of buses for schools.
Speaking at the NPP 2024 Manifesto launch in Takoradi on Sunday, the NPP flagbearer stressed a strong desire to support and expand businesses through a new tax regime to help the economy grow.
“To increase government tax revenue, we have to reform and refocus the Ghana Revenue Authority (GRA) towards broadening the tax base. Estimates suggest that revenues amounting to 13% of GDP (or $24 billion in 2023) are not collected because people are outside the tax net,” Dr Bawumia said.
“We want a tax regime that is easy to understand, easy to comply with and easy to enforce and that is not subject to so much discretion. Many individuals and businesses find our tax system cumbersome and confusing.”
“My government will introduce a very simple, citizen and business-friendly flat tax regime. A flat tax rate for individuals and SMEs, which constitute over 80 per cent of all businesses in Ghana, with appropriate exemption thresholds set to protect the poor.”
Dr Bawumia said with the new tax regime, every tax return should be able to be completed in minutes.
“We will also simplify our complicated corporate tax system and VAT regime,” he added.
Dr Bawumia announced that his government intended to reform the Value Added Tax regime by merging all levies into a single line-item levy and treating the merged levy as part of input and output VAT, to “eliminate the cascading effect in the current regime.”
“My government would like to start the new tax system on a clean slate,” he said.
“My government will provide a tax amnesty, a complete exemption from the payment of taxes for a specified period and the waiving of 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.”
As part of the new tax regime, Dr Bawumia stated that his government would implement it across all aspects of tax administration.
“Everyone will be required to file a very simple tax return electronically through their mobile phone or computer.”
“There will be no more manual or paper filing of taxes. Faceless assessments will provide transparency and accountability.”
“There will be no need for GRA to send officers to go sit in shops. e-invoicing, as being implemented by the GRA, will be extended to all companies,” Dr Bawumia added.
The NPP flagbearer reiterated his ambition to scrap the e-levy under his government.
“Selfless Leadership, Bold Solutions for Jobs and Businesses” was the theme for the manifesto launch.
Source: GNA
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