The Vice President and Flagbearer of the NPP, Dr. Mahamudu Bawumia, took center stage to unveil a transformative vision encapsulated within the 2024 NPP Manifesto. Apexnewsgh reports
The air was buzzing with anticipation as Dr. Bawumia reiterated his commitment to nurturing a conducive business environment through a series of progressive policies aimed at bolstering the private sector and fostering economic growth.
With a resolute tone, he emphasized the imperative of supporting and expanding businesses through the implementation of a new, business-friendly tax regime. Central to this plan was a focus on reforming the Ghana Revenue Authority (GRA) to broaden the tax base, with the intent to capture uncollected revenues estimated at a staggering 13% of GDP, a figure that had amounted to $24 billion in 2023 due to individuals and businesses operating outside the tax net.
“We envision a tax system that is not only easy to comprehend and adhere to but also minimizes discretion and complexity,” Dr. Bawumia articulated. The cornerstone of his proposal was the introduction of a straightforward flat tax regime for individuals and Small and Medium Enterprises (SMEs), encompassing over 80% of businesses in Ghana.
This simplified tax structure aimed to streamline processes, with tax returns expected to be completed in minutes, fostering efficiency and compliance.
Moreover, Dr. Bawumia’s vision extended to revamping the Value Added Tax (VAT) regime, consolidating various levies into a single line-item levy integrated within the input and output VAT framework.
This strategic move sought to eliminate the cascading effect prevalent in the existing system, ensuring a seamless and equitable taxation process.
In a bid to kickstart the new tax landscape on a clean slate, Dr. Bawumia announced a sweeping tax amnesty initiative. This program would provide individuals and businesses with a specified period of complete tax exemption, alongside a waiver on interest and penalties for past tax filing lapses, fostering a fresh start for all stakeholders.
Notably, digitalization stood at the forefront of Dr. Bawumia’s tax modernization agenda, with plans to digitize all facets of tax administration. Mandating electronic tax filings through mobile devices or computers, this initiative aimed to eliminate manual processes, enhance transparency through faceless assessments, and extend e-invoicing practices to all.
Source: Apexnewsgh.com
