Bawumia promises to forgive businesses, individuals of past unpaid taxes if elected president
Vice President Dr. Mahamudu Bawumia has unveiled a comprehensive tax and economic reform agenda aimed at boosting business growth and competitiveness in Ghana.
Speaking at an engagement with the Ghana National Chamber of Commerce and Industry, Dr Bawumia emphasized the need for a revamped tax system and a stronger focus on private sector-led growth.
Dr Bawumia promised a tax amnesty for businesses and individuals in 2025 if he wins the December 2024 presidential elections. He criticized the current tax structure as inadequate and proposed adopting a flat tax system, similar to Estonia’s simplified tax regime.
“We are going to wipe the slate clean for every individual and every business and start a new tax system,” he declared.
A tax amnesty can be defined as a limited-time offer by the government to a specified group of taxpayers to pay a defined amount, in exchange for forgiveness of a tax liability (including interest and penalties), relating to a previous tax period (s), as well as freedom from legal prosecution.
Highlighting the role of technology in modernizing tax administration, the Vice President announced plans for faceless audits. He argued that officials should utilize digital frameworks to conduct audits without physically visiting businesses, ensuring efficiency and transparency.
He emphasized the importance of transitioning Ghana from a social intervention-driven economy to a business-friendly, private sector-led model. He identified high taxes, unfavorable exchange rate regimes, and the need for a conducive business environment as key factors holding back Ghana’s competitiveness within the ECOWAS sub-region.
Acknowledging the challenges faced by businesses, Dr Bawumia aligned his proposals with the recommendations put forth by the Ghana National Chamber of Commerce and Industry. He expressed concern over losing trade to neighboring countries like Togo due to higher import duties and stressed the importance of affordable utilities for businesses.
Clement Osei Amoako, President of the Ghana National Chamber of Commerce and Industry, urged Dr Bawumia to address the obstacles hindering business growth. He called for collaborative efforts to create a transformative economic agenda that aligns with the needs and aspirations of the business community.
As Ghana approaches the 2024 elections, Dr Bawumia’s ambitious tax and economic reforms signal a potential shift towards a more competitive and business-friendly environment. The alignment of his proposals with the Chamber of Commerce’s recommendations underscores the importance of collaboration in driving economic growth and transformation.
