Dr. Mahamudu Bawumia, the leader of the New Patriotic Party (NPP), has reaffirmed his commitment to enacting a flat tax system in Ghana that is modeled after Estonia’s in an effort to assist Ghanaian companies.
He clarified that by giving people visibility into their tax liabilities, this approach will streamline tax administration.
Additionally, he stated that a flat rate will make it easier for businesses to file and pay their taxes, thereby propelling growth.
Dr. Bawumia pledged at the party’s manifesto launch in Takoradi, Western Region, that if elected in the general elections of 2024, he will reduce government spending by three percent of GDP.
By shifting 3% of GDP from government spending (or about GH₵30 billion) to the private sector’s provision of public facilities and services, [we will] assist companies in driving and accelerating employment creation. We will stabilize the currency, provide businesses and industries with planning predictability, and guarantee input price stability by implementing our tried-and-true gold purchase program.
“Introduce a flat rate tax system in Ghana, like Estonia. This will simplify the tax administration by giving taxpayers visibility into their tax obligations and therefore easier to file and pay their taxes
“Complement the Flat Tax regime by using a Tax Amnesty Programme to enable industries to finance their expansion, recruit more employees, and energise economic activity.”
