The 2024 Presidential candidate of the New Patriotic Party and Vice President of Ghana, Dr Mahamudu Bawumia, has stated that the current tax regime has failed the country, therefore, he will introduce some reforms for a new tax system in the country when he is elected President in 2025.
He observed many wealthy people do not pay taxes (including property taxes) and there are too much discretion in the system which result in corruption. Rather, he intimated what the country needs is a 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 46 businesses find our tax system cumbersome and confusing and many feel harassed by the GRA. My administration 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 98% of all businesses in Ghana) with appropriate exemption thresholds set to protect the poor” he emphasized.
Dr Bawumia believes that with the new tax regime, the tax return should be able to be completed in minutes stressing, “We will also simplify our complicated corporate tax system and VAT regime.”
The NPP Flagbearer made the new tax policy proposition when he address the nation on Wednesday, February 7, 2024, to share his vision for the transformation of the economy when elected as President in the upcoming general elections on December 7, 2024.
“To start the new tax system on a clean slate, my government will provide 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” he added.
Dr Mahamudu Bawumia indicated everyone will be required to file a very simple tax return electronically through their mobile phone or computer and there will be no manual or paper filing of taxes from 2025, adding faceless assessments will provide transparency and accountability.
He maintained there will be no need for the Ghana Revenue Authority to send officers to go sit in shops, saying E-invoicing, as being implemented by the GRA will be extended to all companies.
“Estonia, India and Mexico will provide very useful models for Ghana in the area of tax digitalization” he said.
