Vice President and New Patriotic Party (NPP) Flagbearer, Dr. Mahamudu Bawumia, has reaffirmed his commitment to creating a business-friendly environment through a series of tax reforms outlined in the 2024 NPP Manifesto.

Speaking at the manifesto launch in Takoradi on Sunday, Dr. Bawumia highlighted policies aimed at supporting businesses, especially small and medium enterprises (SMEs), while fostering economic growth.

Dr. Bawumia emphasized his administration's intent to overhaul Ghana's tax system, introducing a simplified flat tax regime designed to reduce the burden on individuals and businesses.

"To increase government tax revenue, we have to reform and refocus the Ghana Revenue Authority (GRA) towards broadening the tax base. Estimates suggest revenues amounting to 13% of GDP (or $24 billion in 2023) are not collected because people are outside the tax net," he said.

He further noted the complexities of the current tax structure and how they hinder compliance.

"We want a tax regime that is easy to understand, easy to comply with, and easy to enforce, and that is not subject to so much discretion. Many individuals and businesses find our tax system cumbersome and confusing."

Dr. Bawumia's proposed flat tax system would apply to individuals and SMEs, which represent over 80% of businesses in Ghana, with exemptions in place to protect low-income earners.

"A flat tax of a percentage of income for individuals and SMEs will be introduced, allowing tax returns to be completed in minutes," he stated. He also announced plans to simplify the corporate tax system and the Value Added Tax (VAT) regime, merging all levies into a single line-item levy to reduce the cascading effects currently experienced by businesses.

To launch the new tax regime on a clean slate, Dr. Bawumia committed to offering a tax amnesty, which would waive interest and penalties on unpaid taxes up to a specified year.

"My government will provide a tax amnesty—a complete exemption from the payment of taxes for a specified period and the waiving of interest and penalties—so that everyone will start afresh."

As part of the broader tax reforms, Dr. Bawumia pledged to fully digitize 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," he explained, adding that faceless audits would enhance transparency and accountability.

He also assured that GRA officials would no longer be required to physically visit businesses for tax assessments, as e-invoicing would be extended to all companies.

In addition, Dr. Bawumia reiterated his intention to scrap the e-levy, maintaining that this policy change would alleviate financial pressure on businesses and individuals, thereby promoting growth within the private sector.

Through these tax reforms, Dr. Bawumia aims to foster a more conducive business climate, especially for SMEs, while ensuring that the tax system is simpler, fairer, and more efficient for all.