Bawumia Reaffirms Support To Grow Businesses & SMEs With New Friendly Tax System
Vice President and flagbearer of the New Patriotic Party, Dr. Mahamudu Bawumia has fulfilled his pledge to ensuring a friendly business environment by enshrining his business policies in the 2024 manifesto of the party.
Delivering an address at the launch of the manifesto in Takoradi on Sunday, Dr. Bawumia highlighted his strong desire to support and expand businesses and the private sector through a new tax regime under his government.
He noted this tax regime has been designed to aid businesses and believes it will enhance the growth of the economy.
“To increase government tax revenue, we have to reform and refocus the Ghana Revenue Authority (GRA) towards broadening the tax base. Estimates suggests revenues amounting to 13% of GDP (or $24 billion in 2023) are not collected because people are outside the tax net,” he said.
He added; “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 of a % of income for individuals and SMEs, which constitute over 80 % of all businesses in Ghana, with appropriate exemption thresholds set to protect the poor. With the new tax regime, the tax return should be able to be completed in minutes. We will also simplify our complicated corporate tax system and VAT regime.”
Dr. Bawumia also announced his plans to reform Value Added Tax (VAT) by merging all levies into a single line-item levy and treat the merged levy as part of input and output VAT to “eliminate the cascading effect in the current regime”.
To start the new tax system, Dr. Bawumia stressed; “My government will provide a tax amnesty”, listing them as “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, tax digitalization, Dr. Bawumia noted, will be implemented 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 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.”
The NPP flagbearer also reiterated his intention to scrap the E-levy when he becomes President.
Source: Ghmessenger.com
