Mahama Pledges to Reform VAT Regime, Eliminate Controversial Taxes in First 100 Days of Presidency
John Dramani Mahama, the presidential candidate for the National Democratic Congress (NDC), has pledged to abolish what he describes as “draconian taxes” within his first 100 days in office if elected in the upcoming 2024 general elections.
Among the taxes targeted for elimination are the controversial e-levy, the COVID levy, a 10% tax on betting winnings, and the emissions levy.
During the launch of the NDC’s 2024 manifesto in Winneba on August 24, Mahama emphasized that these measures aim to alleviate economic hardships and reduce the high cost of doing business in Ghana.
He stated, “We will scrap the following draconian taxes within our first 100 days in office to alleviate hardships and ease the high cost of doing business.”
Additionally, Mr Mahama committed to removing import duties on vehicles and equipment imported for industrial and agricultural purposes, further supporting economic growth in these sectors.
He also proposed applying the Price Stabilization and Recovery Levy on fuel to cushion consumers and rationalizing port fees to ease the burden on importers.
In a broader effort to reform Ghana’s tax system, Mr Mahama announced plans to undertake a comprehensive overhaul of the Value Added Tax (VAT) regime.
This would include reversing the VAT flat rate system, adjusting the VAT registration threshold to exempt micro and small businesses, and repealing the law imposing VAT on domestic electricity consumption.
“We will undertake a comprehensive reform of Ghana’s VAT regime to provide relief for households and businesses. This will include reversing the decoupling of GETFund and NHIL from VAT, reversing the VAT flat rate regime, upwardly adjusting the VAT registration threshold to exempt micro and small businesses and repealing the law imposing VAT on domestic electricity consumption,” he quipped.
