Vice President and flag bearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has told members of the Council of Indigenous Business Association of Ghana (CIBA) that his new tax reforms policy is carefully thought-through to help the growth of businesses, especially indigenous ones.
Following his major policy address as the new flag bearer of the NPP in February, Dr. Bawumia has been interacting with various stakeholders to further explain his policies to them and also seek their views and suggestions.
In Accra Monday, March 25, 2024, he had an extensive interactive session with the CIBA, which is the largest informal group in the country.
While answering series of questions from members of the Association, Dr. Bawumia explained a number of his policies including his proposed new tax reforms, which he said, are aimed at boosting the business community, including indigenous businesses, to make them competitive.
He explained that the tax amnesty he has announced for businesses and individuals, which his government will introduce from 2025, as well as the flat tax rate, are aimed at simplifying tax payment for businesses to help their growth.
“The new tax reforms I have outlined, including the flat tax rate will make the tax system transparent and easy to calculate. For instance, if your tax is based on simple percentage of your profit, you can easily calculate what you have to pay yourself and file your own tax. You don’t have to wait for any tax official to come to you and find the process difficult to understand,” Dr. Bawumia said.
“If the tax rate is flat, it will be more transparent, simple and easy to understand. This is what many businesses need to help them and also to make it very competitive for them. Many businesses and individuals continue to complain about the tax system, including harassment they face. It is because the process is not transparent and you feel overburdened. We want to correct this and help your businesses grow,” Dr. Bawumia added.
As part of the tax reforms, Dr. Bawumia also explained that import duties on containers will be flat and, also, exchange rates for import duties will be left stable over a period, to ensure predictability in import duties.
The NPP flag bearer also explained to CIBA that his government will benchmark Ghana’s import duties with Togo, or even make it lower, to ensure that Ghana does not lose out to Togo, because of lower import duties.
The Vice President additionally reiterated his commitment to cancelling the e-levy tax to further boost businesses and enhance his quest for a cashless society.
Members of CIBA include the Ghana National Association of Garages, National Drinking Bar Operators Association, Ghana Bar Operators Association, National Association of Beauticians and Hairdressers, National Refrigerators and Air Condition Workshop Owners Association, Federation of Ghana Goldsmith and Jewelers Association, Ghana Traditional Caterers Association, Ghana Electronics Serving Technicians Association, Ghana Association of Barbers and Barbering Salon Owners, Ghana National Tailors and Dressmakers Association and National Cooperative Bitchers Association.
‘Mahama represents the past, I represent the next chapter & future of our country’ – Bawumia
