By Emmanuel Oti Acheampong
The Flagbearer of the New Patriotic Party, Dr. Mahamudu Bawumia has outdoored his vision for the nation should he be voted President in 2025.
In a party-cludded event held at the University of Professional Studies in Accra on January 7, 2024, Dr. Bawumia laid down the achievements the Akufo-Addo-led government has chalked over their period of governance with him as the ‘Drivers mate”.
He touted himself as one who has duly served his boss and is now prepared to outline his visions that will serve as a solution to the majority of the problems Ghana currently is facing.
As part of his visions, Dr. Bawumia mentioned that a major goal of his government would be to attain and sustain macroeconomic stability with low inflation, low-interest rates, exchange rate stability and low budget deficits.
According to him, his government can sustain the macroeconomic stability of the country through the prudent management of government expenditure, increasing revenue and leveraging on the private sector.
He emphasized on the need to introduce a new tax regime in order to raise enough government revenue to reach the level of a stabilized macroeconomy.
He noted that the current tax regime which the country has been with for years has failed the people and therefore a new one is necessary for that effect.
The new tax regime that will be introduced, will be a very simple, citizen and business-friendly flat tax regime. A flat tax of a % of income for individuals and SMEs (which constitute 98% of all businesses in Ghana) with appropriate exemption thresholds set to protect the poor.
To commence the new tax regime, there will be a tax amnesty (i.e. 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.
Tax digitalization 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 from 2025. 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 47 by the GRA will be extended to all companies.
Any audits by GRA would also be done electronically and facelessly by GRA. Furthermore, no entity would be audited more than once in five years unless anomalies are detected which the individual or company does not correct after being given the opportunity to do so.
The government will also will amend the law such that if there is a dispute about tax assessment, binding arbitration will take place through a body constituted by institutions such as the Ghana Arbitration Center, Institute of Taxation, AGI, Institute of Chartered Accountants, PEF, and Ghana Employers Association with a mandate to resolve any appeal in a maximum of three months.
This will not affect companies who by their agreements have such arbitrations taking place in international jurisdictions.
He added that with cuts in government expenditure, the private sector undertaking expenditure that would normally be done by the government and the new tax regime that will enhance compliance, broaden the tax base, and increase tax revenue, the situation we are going to face in 2025 is going to be very 48 different from the situation we faced in 2020 and 2022.
He stressed that with the new tax regime, the tax return should be able to be completed in minutes. It will also simplify our complicated corporate tax system and VAT regime.
He further mentioned that with the implementation of the new tax regime, it will eliminate some taxes such as the VAT on electricity, the emissions tax and the betting tax without compromising our deficit target.
