The Vice President and Flagbearer of the NPP, Dr. Mahamudu
Bawumia, has reiterated his commitment to creating a
friendly economic environment for businesses and the
private sector to thrive and drive the transformation of the
economy under his Presidency.
At a special dinner last night, which brought together CEOs of
companies and other key players of the private sector, to
interact with Presidential Candidates of the two major
parties, Dr. Bawumia told the CEOs the private sector I
indispensable to the growth of the economy, insisting that
the economy can only thrive and enjoy sustainable growth
when the private sector is doing well.
"When businesses do well, the economy does well, and vice
versa. Show me a buoyant national economy in any part of
the world and I'll show you strong and resilient businesses
behind it," Dr. Bawumia said, reiterating his strong desire to
implement what he called bold solutions to help the
sustainable growth of businesses and the private sector."
"My vision for Ghana is to implement bold innovative
solutions to ensure sustainable development."
At the centre of Bawumia's bold solutions for businesses,
includes his plans to overhaul the present tax system, which
he said is inimical to the growth of businesses, allowing the
private sector to undertake more of government
infrastructure projects, etc.
In all, including the introduction of a new, business-friendly
tax regime, Bawumia listed…….. steps to help boost the
business private sector, in what he said, will be a revived
economy with an expected GDP growth rate of 5.6, following
the remarkable indicators of recovery.
"I know many of you in this room are eager to take
advantage of the economic recovery to build back up your
enterprise," Dr. Bawumia said.
"Yet, you may also be struggling with a big tax burden and
huge penalties slapped on top of your tax arrears. Many of
you are spending precious time that can be used
productively, going back and forth with revenue officers, over
disagreements on what may be owed."
"I want to relieve you of that headache. If elected, I will do so
by introducing a radically new tax system, beginning in
2025,"
Below are Bawumia's steps to revive the business:
a. Tax Amnesty
"My government will provide a total tax amnesty (i.e. a
complete exemption from the payment of prior taxes due
and the waiving of all associated interest and penalties) to
individuals and businesses who failed to file taxes in previous
years," Dr. Bawumia said.
"The intention, like all amnesties, is not to reward bad
behaviour but, rather, to give the beneficiaries a fresh start.
In return, my government will expect all those who benefit
from this most significant gesture to invest such savings
directly into creating jobs and growing their business.
b. Flat Tax Rate
"From all my interactions with taxpayers, what you want is a
tax regime that is easy to understand, easy to comply with,
easy to enforce, softer on the taxpayer and, certainly, not
dependent on the discretion of the tax collector. I pledge to
give you exactly what you want," Dr. Bawumia assured the
CEOs.
" My government will introduce a flat tax of a percentage of
income for individuals and businesses with appropriate
exemption thresholds set to protect the poor. We will
simplify the corporate tax system. We will reform the Value
Added Tax regime by merging all levies into a single line-item
levy and treat the merged levy as part of input and output
VAT. The new system should allow you to complete your tax
return in minutes."
c. Electronic filing of taxes for efficiency
"Also, everyone will be required to file a very simple tax
return electronically. E-invoicing, as being implemented by
the GRA will be extended to all companies. There will be no
manual or paper filing of taxes. The sight of GRA officers
stationed on factory and shop floors will soon be history, "
" Faceless assessments will provide transparency and
accountability and enhance the fight against corruption and
the push for greater compliance,"
d. Empower the private sector to undertake public
infrastructure projects.
"A Bawumia Presidency will encourage and empower the
private sector to finance, build, and rent or lease-to-own to
government a vast number of public infrastructure, from
schools to homes, and from roads to equipment and
vehicles."
"Let me emphasise, my government will be for business. All I
ask is for business to be with me. A Bawumia Presidency will
encourage and empower the private sector to finance, build,
and rent or lease-to-own to government a vast number of
public infrastructure, from schools to homes, and from roads
to equipment and vehicles."
'We recognize the primacy of government spending in
enhancing growth, and my government will be deliberate in
directing this significant government power to the private
sector. By leveraging the purchasing power of government
and channeling it towards the private sector, Ghanaian
businesses will have a stable and increased pipeline of
projects and revenues, based on which they will create jobs
and services."
"My government will facilitate structured long-term financing
and payments options to support it. This will also lead to
efficiency gains by cutting waste, corruption and ensuring
value for money in procurement. My focus is to find solutions
and not to echo problems, repeatedly
In other to to achieve the above, Dr. Bawumia proposed the
following
i. increase Public-Private-Partnerships (PPPs) as an
important financing model for delivering public infrastructure
projects, including schools, housing, water, and roads
ii Cut 3% of GDP from government expenditure (GH₵30
billion), and redirect it towards private sector provision of
public infrastructure and services, as earlier stated
iii. leverage government’s purchasing power to stimulate
industrial expansion and business growth with a strict “Buy
Ghana First” policy, under which all goods and services
procured by the public sector will first be sourced from local
producers or service providers
iv. establish an SME Bank to meet the special financing
needs of small and medium businesses, which employ over
80% of Ghanaians, especially women
v. set up a Women’s Trade Empowerment Fund to
support women-owned businesses with funds for expansion
and working capital
vi. offer start-up companies Investment Tax Credits (ITC)
for the first three (3) years of their operations
vii. make the cost of electricity cheaper for industries by
making commercial tariffs equal or lower than residential
rates
viii. introduce a flat rate system of duties for all importers
ix. lower port charges to compete with charges in
regional ports, particularly, Lome, Togo.
x. Today, we made history when I launched the first
individualized credit scoring regime in Ghana, MyCredit
Score. We are going to use the Credit Scoring System to
enable the average Ghanaian to buy on credit: “Buy now, pay
small, small”. This will increase domestic demand, increase
production and create jobs
xi. Establish a Fintech Fund with seed capital of US$100 y
attract additional private sector funding to support Ghanaian
start-ups developing payments and financial services
solutions
xii. Arovide venture funding and grant support for
commercially viable tech projects by Ghanaian start-ups to
drive innovation, foster high-tech entrepreneurship, create
jobs, and grow Ghanaian high-tech businesses, and
xiii. complete the digitalisation of land titling and
registration to allow owners of landed properties to use their
assets to raise capital for business growth and expansion.
Having listed his vision to help the private sector thrive, Dr.
Bawumia assured the CEOs of his commitment towards
sustainable development for the private sector.
"My vision for Ghana is to implement bold innovative
solutions to ensure sustainable development. Beware of
those seeking short-term mandates and promising quick
fixes. They don’t last."
"Sustainable development is not an alternative, it is our only
option. In Ghana, 73% of the population is 0 to 35 years old.
This means that about seven in ten Ghanaians are children
and young people. The present and future generations are
counting on us for quality and more affordable education.
They are counting on us for improved health services, peace
and security, reliable food supply, a safe environment, clean
water, and above all sustainable jobs and economic
prosperity."
