The Vice President Dr. Mahamudu Bawumia has revealed his plan to implement a new, “friendly” flat tax regime if elected President.
According to him, this system will simplify the tax system, boost national coffers and encourage the payment of new friendly taxes.
Dr. Bawumia emphasized that his administration will introduce a citizen and business-friendly flat tax regime, which would primarily benefit small and medium enterprises (SMEs) and individuals. This move aims to enhance businesses, with digital reforms to enable online filing of tax returns in minutes.
Furthermore, Dr. Bawumia announced plans to simplify the corporate tax system, VAT regime, and provide a tax amnesty, exempting individuals and businesses from the payment of taxes for a specified period and waiving interest and penalties for failures to file taxes in previous years.
He also stated that tax digitalization will be implemented across all aspects of tax administration, requiring everyone to file a simple tax return electronically through their mobile phone or computer, with no manual or paper filing of taxes from 2025.
The NPP Flagbearer assured that the new system would eliminate the need for GRA officers to monitor businesses, as e-invoicing, being implemented by the GRA, would be extended to all companies. Additionally, any audits by GRA will be done electronically and facelessly, with binding arbitration to take place in case of a dispute about tax assessment. Dr. Bawumia also promised to abolish the e-levy, emissions tax, tax on betting, and the proposed 15% VAT on electricity tariff to enhance a cashless system.
Overall, Dr. Bawumia’s vision for Ghana’s tax system involves significant reforms to make it more efficient, transparent, and easier for businesses and individuals to comply with, if he is elected President.
