Bawumia seeks to change the tax regime – Dr Bannor

Head of Research at the Danquah Institute, Dr Frank Bannor has said that the Flagbearer of the New Patriotic Party (NPP) Dr Mahamudu Bawumia seeks to implement a new tax regime if he is elected president.

He says the new tax regime will broaden the tax base and to capture more people in the tax bracket.

“He wants to change the fiscal regime, it won’t be just as we have it now because currently the tax is bored by a few,” Dr Bannor said on the Key Points on TV3 on Saturday, August 31.

“Based on the new tax regime he is going to roll out, it will give him the room to implement new policies,” he added.

Dr Bawumia had promised in the 2024 manifesto to abolish the tax on electronic financial transaction, e-levy, if elected President of Ghana.

The controversial tax was introduced in 2022, and prior to the introduction, Vice President Bawumia had declared his opposition to levies on electronic financial transaction in an interview.

Dr. Bawumia minced no words in declaring his opposition to taxes on electronic financial transactions, declaring that he will abolish e-levy as President.

Dr Bawumia added that his bid for a Digital and Cashless Ghana will be significantly boosted if e-levy is abolished.

“To move towards a cashless economy, however, we have to encourage the population to use electronic channels payment. To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will therefore, be abolished,” he declared at the UPSA auditorium on February 7.

Dr. Bawumia also announced that as part of a new tax regime by his government, he will also abolish the emission tax, tax on betting as well as the proposed 15% VAT on electricity tariffs, if it is in existence by January 2025.

He also announced that his government would introduce what he described as a friendly, flat tax regime for Ghana, which will boost individuals and businesses, particularly small and medium-scale enterprises (SMEs).

“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% of all businesses in Ghana, with appropriate exemption thresholds set to protect the poor,” Dr. Bawumia indicated.

 

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