Dr. Mahamudu Bawumia, the governing New Patriotic Party’s (NPP) presidential candidate and Vice President, has announced a bold initiative to implement a comprehensive tax amnesty policy for individuals and businesses if elected president in 2025.
This policy is designed to pave the way for a transition to a flat rate tax system, where all Ghanaians would be subject to a single rate on taxable goods and services.
During his three-day campaign tour of the Ashanti Region, Dr. Bawumia addressed members of the Ashanti Regional House of Chiefs, emphasizing the significance of this tax reform in providing clarity and predictability for importers and businesses.
He explained that by streamlining the tax structure, the proposed policy would allow businesses to better forecast their tax obligations, fostering a more conducive environment for economic growth and investment.
Dr. Bawumia highlighted the importance of adopting a fresh approach to taxation that aligns with his broader economic vision whilst stressing the need for innovative measures that simplify the tax regime, stimulate economic activity, and support the government’s development agenda.
“There is one thing that is disturbing importers—there is no predictability. The predictability of import duties will help importers to have a fair idea of how much to pay and on a flat rate in Ghana Cedis. The quantity of each good being imported must have a flat rate since there is no predictability. Prices of goods and services are being increased without notices and benchmarks, and this brings about inflationary biases,” Dr. Bawumia told the traditional rulers.
Dr. Bawumia’s proposed tax reforms aim to address these issues, providing a more stable and transparent tax environment for businesses and individuals alike.
