Dr. Frank Bannor, Head of Research at the Danquah Institute and Development Economist, has observed that one of the main points of emphasis in the NPP’s new manifesto is Dr. Bawumia’s pledge to streamline Ghana’s intricate tax system in order to promote economic expansion.
Dr. Bannor mentioned that the nation’s current tax structure is seen as unduly complex and onerous for both corporations and individual people in an interview with France24 news over the document’s suggested revisions. The NPP seeks to address this issue head-on.
“Ghana’s tax system is not only complicated but also a significant hindrance to economic growth. For instance, it requires businesses to hire specialists just to understand their tax obligations by GRA, which pushes some to evade taxes altogether, leading to a loss in government revenue,” he stated.
Dr. Bannor disclosed that he had talks with important stakeholders like the Ghana Union of Traders Association (GUTA), the Ghana National Chamber of Commerce and Industry, the Ghana Carages Association, and the Pharmaceutical Society of Ghana as a member of the identifiable group within the manifesto committee. He claims that the input from these parties has always emphasized how onerous the tax code is and how it frequently puts an excessive amount of strain on companies.
Modifying the tax structure
According to Dr. Bannor, the manifesto calls for a comprehensive reorganization of Ghana’s tax structure, including the adoption of a more straightforward flat-rate tax structure.
He took his cue from Estonia, which had successfully imposed a flat 20% tax rate. He clarified that the goal of the NPP’s strategy is to make sure that businesses are encouraged to expand while streamlining the tax code.
“Dr. Bawumia’s vision goes beyond just taxation; it’s about fostering a more business-friendly environment. The goal is to introduce a progressive tax system that allows businesses to thrive before being subjected to heavier taxation,” Dr. Bannor stated.
Job creation and youth empowerment
According to Dr. Bannor, the manifesto also emphasizes the creation of jobs, especially for Ghana’s youth. He outlined intentions to train one million Ghanaians in software and IT, enabling them to take advantage of the prospects presented by the fourth industrial revolution.
In order to ensure that no one is left behind in the digital transition, he emphasized that this project is intended for both persons with basic education and university graduates.
“Ghana has missed out on previous industrial revolutions, but we cannot afford to miss out on the digital age. The vision is to position Ghana as a regional IT hub, much like India has become a global leader in the tech industry,” Dr. Bannor explained.
He mentioned that one of the manifesto’s other proposals is to streamline business registration procedures, which are now thought to be a significant barrier for new business owners. Dr. Bannor stated that the NPP hopes to imitate Rwanda’s achievement in developing a digitalized, cashless system for business registration in Ghana. He thinks business owners should expect lower prices and a removal of bureaucratic obstacles from this reform.
