The Flat Tax idea by the flagbearer of the New Patriotic Party (NPP) Dr Mahamudu Bawumia will be impactful if implemented well, Founding President of IMANI Africa Franklin has said.
Dr Bawumia while, speaking at the NPP’s manifesto launch in Takoradi on Sunday, August 18, said that his government will prioritise the strengthening of businesses, especially SMEs, in order to enhance their growth and boost both the economy and job creation..
At the launch of the NPP’s 2024 Manifesto in Takoradi on Sunday, Dr. Bawumia said, his government will focus on delivering bold solutions for businesses and jobs, and as part of that, he revealed what he called business friendly policies, including a friendly tax regime, as well as direct incentives to support the growth of businesses.
Among the incentives Dr. Bawumia announced his government will offer businesses are:
a. incentivise Ghanaian start-ups in selected, strategic sectors with Investment Tax Credits (ITC) for the first three (3) years of their operations
b. Flat Rate for all importers; bringing predictability and stability on prices of imported goods.
c. harmonise port charges to align with charges in competing regional ports, particularly Togo. Duties at our ports will be same or lower.
d. use Government’s purchasing power to stimulate industrial expansion and business growth, which will help create jobs, by rolling out a “Buy Ghana First” policy under which all goods and services procured by the public sector will first be filled by goods and services produced locally.
e. Implement a shift in electricity tariffs structure to a regime in which commercial rates are either equal to, or lower than residential rates, never higher, to power industries and businesses
f. establish an SME Bank to meet the special financing needs of small and medium businesses, which employ over 80% of Ghanaians.
g. reform the licensing regime for the small-scale mining sector, reduce the minerals export tax to 1% to discourage gold smuggling, and establish a Minerals Development Bank to finance viable local mineral projects, small scale miners, as well as Ghanaian mining and mining services firms
h. complete the digitalisation of land titling and registration to allow owners of landed properties to use their properties as collateral to raise capital for business growth and expansion.
i. Special Economic Zones ( Free Zones) will also be created in collaboration with the private sector at Ghana’s major border towns such as Aflao, Paga, Elubo, Sankasi and Tatale to enhance economic activity, increase exports, reduce smuggling and create jobs.
Reacting to this in a Facebook post, Franklin Cudjoe said “DMB admits economic challenges but falls short of acknowledging the role his government’s fiscal recklessness contributed to the atrophy
“It is not true that unemployment rate was higher in 2016 than now. It is almost 4× higher now.
“And Dumsor was solved by December 2016 so there was no need for it in 2024. His Flat Tax idea though will be impactful if implemented well. His pledge to govern with 50 ministers is a great move.”
