The Vice President Dr. Mahamudu Bawumia, says Ghana will have a new, "friendly" flat tax regime when he is elected President.
Addressing the nation in Accra on Wednesday, February 7, 2024 to outline his vision and priorities for Ghana, the NPP flagbearer said in order to enhance businesses, especially small and medium enterprises (SMEs), there is the need to reform the tax system to the advantage of the business community, and also encourage the payment of the new friendly taxes.
This, he said, will boost the national coffers.
"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 declared.
Dr. Bawumia also noted that, with digital reforms to boost online filing of tax, tax returns should be completed in minutes.
"We will also simplify our complicated corporate tax system and VAT regime," he added.
Dr. Bawumia also stated that, to start the new tax system on a clean slate, "My government will provide a tax amnesty, i.e. a complete exemption from the payment of taxes for a specified period and the waiving of interest and penalties, up to a certain year to individuals and businesses for failures to file taxes in previous years so that everyone will start afresh."
"Tax digitalization will be implemented across all aspects of tax administration. Everyone will be required to file a very simple tax return electronically through their mobile phone or computer. There will be no manual or paper filing of taxes from 2025. Faceless assessments will provide transparency and accountability," he added.
The NPP Flagbearer also stressed that with the new system, there will be no need for GRA to send officers to go sit in shops and monitor proceedings in order to collect taxes, adding that E-invoicing, as being implemented by the GRA, will be extended to all companies.
"Any audits by GRA would also be done electronically and facelessly by GRA. Furthermore, no entity would be audited more than once in five years unless anomalies are detected which the individual or company does not correct after being given the opportunity to do so."
Dr. Bawumia also said his government will amend the law such that if there is a dispute about tax assessment, a binding arbitration will take place through a body constituted by institutions such as the Ghana Arbitration Center, Institute of Taxation, AGI, Institute of Chartered Accountants, PEF, and Ghana Employers Association with a mandate to resolve any appeal in a maximum of three months.
"This will not affect companies who by their agreements have such arbitrations taking place in international jurisdictions,' he assured.
Dr. Bawumia used the platform to announce that his government will abolish e-levy, the tax on electronic payment transaction, to enhance a cashless system, as well as the emissions tax, tax on betting and the proposed 15% VAT on electricity tariff.
Latest Stories
-
GAF advocates for more women to be enlisted into the military
7 mins -
Fifa faces legal threat over congested calendar
9 mins -
Nobody will continue your legacy; not even Bawumia – Akufo-Addo told
18 mins -
Corruption Fight: Blockchain technology to make government data tamper-proof – Dr Bawumian hints
20 mins -
Chancellor’s Cup: KNUST play AAMUSTED in a soccer match to honour Asantehene
22 mins -
Anti-LGBTQ+ bill: AG’s request for live telecast of proceedings is in the right direction – Kweku Paintsil
28 mins -
My ex-husband stole my identity and almost had me behind bars
37 mins -
Today’s front pages: Friday, May 10, 2024
59 mins -
Akufo-Addo nominates Joyce Agyeiwaa as Birem Central DCE
1 hour -
More businesses will cease operation in Ghana if government doesn’t address concerns – GNCCI
1 hour -
Exit of international COYs from Ghana not surprising- GNCCI CEO
1 hour -
Kofi Adu Domfeh writes: Amidst the heatwaves arrive the rainstorm and floods
1 hour -
You can’t plan for more than one day. What system is this? – Frustrated Ken Thompson lashes out at government
1 hour -
Let’s guard our peace and cohesion – Weta chief advises politicians
2 hours -
TikTokers charged over police station robbery prank
2 hours