NPP plans to introduce major tax reforms with the flat rate tax system. On the other hand, NDC is looking to revise some taxes, focusing on progressive taxation to fund social programs.

While flat taxes seem simple at first, they can become complicated due to exemptions, deductions, and special cases. This complexity can make flat taxes less effective, leading some countries to return to progressive tax systems. Countries like Latvia and Lithuania initially adopted flat taxes but later switched to progressive systems due to concerns about revenue and social equity. The shift was driven by the need to address income inequality and better fund public services.

The global economy has changed since flat taxes were first introduced. With the growth of digital economies, rising income inequality, and the need for more social protection, governments are reconsidering their tax strategies. Progressive taxes, where the wealthy pay a higher percentage of their income, are often better suited to today's challenges.

Critics argue that flat taxes are regressive, meaning they place a heavier burden on lower-income earners. As concerns about social equity grow, many countries are rethinking systems that could worsen income inequality. Progressive taxes are seen as fairer, ensuring the wealthy contribute more to society.

In many cases, flat taxes have not generated enough revenue to support government services, especially in countries with high income inequality. Data from the World Bank on the Gini coefficient for Ghana is around 43.5 while Estonia has 31.8. This means that Ghana has a higher income inequality. Therefore,  progressive taxes allow governments to collect more from wealthier individuals and corporations, which is essential for funding social services and infrastructure.

Progressive taxation supports the funding of social welfare programs and public services. As populations age and income gaps widen, there is increasing pressure on governments to enhance these programs. A progressive tax system can help meet these needs by collecting more from those who can afford to pay. There is also growing public demand for tax systems that are seen as fairer. Progressive taxes are viewed as ensuring that the wealthy pay their fair share. Political movements pushing for income redistribution and social justice have gained momentum, influencing tax policy changes.

Flat taxes have the appeal of simplicity, applying a single rate to all income levels. This makes it easier for taxpayers to understand and for the government to manage. With fewer tax brackets and deductions, individuals and businesses spend less on tax preparation and compliance. Supporters argue that flat taxes are fairer because everyone pays the same rate, and they believe this system can encourage economic growth by reducing the penalty on earning more. The predictability of a flat tax can also attract foreign investment, as stable and transparent tax systems are often preferred.

However, as countries face economic challenges, many are finding that progressive taxes offer a more balanced approach. These systems not only address equity concerns but also provide governments with the revenue needed to support social programs and services.