By Alex Ababio
Kumasi, Ashanti – The Vice President,His Excellency Dr. Mahamudu Bawumia, who doubles as the presidential candidate for the New Patriotic Party (NPP), has unveiled ambitious plans for tax reform aimed at revitalizing Ghana’s economy.
Speaking at a gathering of business leaders in the Ashanti region as part of his listening tour , Dr. Bawumia emphasized his commitment to implementing a tax amnesty and transitioning to a simplified tax system modeled after Estonia’s successful flat tax system.
The final leg of his nationwide listening tour, aimed at understanding the challenges confronting Ghanaian businesses and addressing their concerns in his manifesto, concluded with the 16th region visit. This tour followed visits to all fifteen other regions across the country.
Dr. Bawumia highlighted the need for Ghana to overhaul its current tax structure, citing Estonia as a prime example of efficient taxation. “I went there with my team to study their taxation system. They have a simple tax rate which we aim to adopt under my presidency,” Dr. Bawumia stated, underscoring his intent to streamline Ghana’s tax administration and reduce complexities associated with the Ghana Revenue Authority (GRA).
Addressing concerns from various sectors including the Association of Ghana Industries (AGI), importers, exporters, and small-scale miners, Dr. Bawumia acknowledged challenges such as high power costs, interest rates, exchange rate depreciation, and the existing tax and import duty systems. “Our goal is to foster private sector growth through comprehensive policy reforms,” he asserted.
Regarding tax collection, Dr. Bawumia noted the introduction of Tax Identification Numbers (TINs) to improve compliance. “Previously, only 4% of adults had TINs. With the introduction of the Ghana Card, we have raised this to 85%, facilitating better tax enforcement,” he explained, highlighting GRA’s enhanced capability to track non-compliant taxpayers.
Detailing his plans for a simplified tax regime, Dr. Bawumia proposed a flat tax system across income, corporate, and value-added taxes (VAT), akin to Estonia’s model. “This will eliminate adversarial relationships between businesses and tax authorities,”
, he remarked, stressing the move towards online, faceless audits to minimize corruption and inefficiency. This approach aims to create a fairer and more transparent tax administration system, reducing the potential for personal biases in auditing processes.
Dr. Bawumia highlighted the benefits of transitioning to digital platforms for tax compliance. “With faceless audits, businesses can expect a streamlined process where audits are conducted electronically, enhancing efficiency and minimizing disruptions,” he explained. This shift aligns with global best practices, ensuring that tax assessments are based on objective criteria rather than subjective interpretations.
Furthermore, Dr. Bawumia emphasized the role of technology in facilitating taxpayer engagement. “Under our new system, communication with tax authorities will be predominantly online, fostering a more responsive and accessible approach to addressing taxpayer concerns,” he stated. This digital transformation is expected to enhance trust between businesses and the GRA, promoting compliance while reducing administrative burdens.
As Ghana prepares for the implementation of these reforms, stakeholders anticipate a more resilient and adaptive tax regime under Dr. Bawumia’s leadership. His commitment to modernizing tax administration reflects a strategic vision aimed at bolstering economic competitiveness and supporting sustainable growth across all sectors of the economy.
The proposal has garnered support from various quarters, with stakeholders expressing optimism about the potential benefits of a simplified and technology-driven tax system. As the election season approaches, Dr. Bawumia’s tax reform agenda is set to remain a focal point in discussions about Ghana’s economic future and governance priorities.