New flat tax regime for Ghana under my Presidency – Dr Bawumia

Accra: Vice President Dr Mahamudu Bawumia, the Flagbearer of the New Patriotic Party, says Ghana will have a new 'friendly' flat tax regime if elected as President of Ghana. Addressing the nation in Accra on Wednesday to outline his vision and policy priorities for Ghana, the NPP Flagbearer said to enhance businesses, especially small and medium enterprises (SMEs), he would constitute the majority of the Ghanaian business community to reform the tax system to their advantage. He would also encourage the payment of the new friendly taxes to boost the national treasury. 'My Administration will introduce a very simple, citizen and business friendly flat tax regime. A flat tax of a percentage of income for individuals and SMEs, which constitute 98 per cent of all businesses in Ghana, with appropriate exemption thresholds set to protect the poor,' Dr Bawumia pledged. There would be digital reforms to boost online filing of tax, tax returns should be completed in minutes, he added. 'With the new tax regime, th e tax return should be completed in minutes! We will also simplify our complicated corporate tax system and VAT regime,' Dr Bawumia added. '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 digitalisation 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,' he added. Dr Bawumia said with the new system, there would be no need for the Ghana Revenue Authority (GRA) to send officers to go to shops and monitor proceedings in order to collect taxes as the E-invoicing, being implemented by the GRA, would be extended to all companies. 'Any audits by the GRA would also be done electronically and facelessly by the 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,' he said. 'My government will amend the law such that if there is a dispute about tax assessment, a binding arbitration will take place through a body constituted by institutions such as the Ghana Arbitration Centre, 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.' Dr Bawumia announced that his government would abolish e-levy, the tax on electronic payment transaction, to enhance a cashless system, as well as the emissions tax, tax be tting, and the proposed 15 per cent VAT on electricity tariff. The event was on the theme: 'Ghana's Next Chapter: Selfless Leadership and Bold Solutions for the Future,' which enabled the NPP Flagbearer for the December Election to outline his vision and direction for the nation. In attendance were Mrs Rebecca Akufo-Addo, the First Lady, Wife of the Vice President, Hajia Samira Bawumia, former President John Agyekum Kufuor, former Speaker of Parliament, Professor Mike Aaron Oquaye, and Mrs Osei Frema-Opare, the Chief of Staff. Others include Mr Stephen Ayensu Ntim, the National Chairman of the NPP, Mr Justin Kodua Frempong, the NPP General Secretary, former presidential aspirants of the party, ministers of State and members of Parliament, Party Executives, Council of Elders, the diplomatic community and supporters across the 16 regions. The Kofi Ohene Konadu Auditorium of the University of Professional Studies, Accra (UPSA), the venue of the lecture,was filled with the interior decoration magnifying the e lephant family colours: red, blue and white. Source: Ghana News Agency