The flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has announced that his government will institutionalize the “Gold for Forex” program to stabilize Ghana’s exchange rates.
Under the domestic gold purchase program, the Bank of Ghana (BoG) has accumulated over five billion dollars worth of gold reserves since 2021.
Bawumia also pledged to foster a business-friendly environment by partnering with the private sector to build roads, school infrastructure, hostels, and buses for schools.
At the NPP 2024 Manifesto launch in Takoradi on Sunday, he emphasized his commitment to supporting and expanding businesses through a new tax regime designed to stimulate economic growth.
To boost government tax revenue, we need to reform and refocus the Ghana Revenue Authority (GRA) to broaden the tax base,
Estimates indicate that revenues equivalent to 13% of GDP (or $24 billion in 2023) are lost due to people being outside the tax net.
We aim to create a tax regime that is simple to understand, comply with, and enforce, reducing the discretion involved. Many individuals and businesses find our current tax system cumbersome and confusing.
My government will introduce a straightforward, citizen- and business-friendly flat tax regime. This will include a flat tax rate for individuals and SMEs, which make up over 80% of all businesses in Ghana, with appropriate exemptions to protect the poor.
Bawumia stated that the new tax regime will allow tax returns to be completed in minutes.
We will also simplify our complex corporate tax system and VAT regime,
He announced plans to reform the Value Added Tax system by consolidating all levies into a single line-item levy, treating it as part of input and output VAT to eliminate the current cascading effect.
My government intends to start the new tax system with a clean slate,
We will offer a tax amnesty, providing a complete exemption from tax payments for a specified period and waiving interest and penalties on unfiled taxes for previous years, allowing everyone to start afresh.
As part of the new tax regime, Bawumia outlined that tax administration would be simplified across all aspects.
Everyone will be required to file a very simple tax return electronically via mobile phone or computer,
There will be no more manual or paper tax filings. Faceless assessments will ensure transparency and accountability.
There will be no need for GRA officers to visit shops. E-invoicing, currently being implemented by the GRA, will be extended to all companies,
Bawumia added. He reiterated his intention to abolish the e-levy under his administration.
The theme for the manifesto launch was “Selfless Leadership, Bold Solutions for Jobs and Businesses.”
