June 18, 2024
P.O.Box 613ER Gombilla House, Lamashegu Market, Tamale, Northern Region

Ghana will have lowest tax rate in ECOWAS under my presidency – Alan

The founder and leader of the Movement for Change, Alan Kyerematen, has pledged to abolish several taxes imposed on imports that he said are unnecessary and a huge burden to the trading community.

Mr. Kyerematen made the pledge in an engagement with members of the Ghana Union of Traders Association (GUTA).

He said the abolishment of such taxes and levies would make Ghana the country within the ECOWAS subregion with the lowest tax regime.

“Under my presidency, Ghana will have the lowest tax rate regime in ECOWAS,” he said.

Outlining a raft of radical tax measures to realign and reduce the burden of taxes on Ghanaians, especially on imports, Mr. Kyerematen said immediate measures will include consolidating the existing NHIL & GETFund levies at the ports into the calculation of a new VAT rate, and the abolition of the Special Import Levy of 2%, COVID-19 Health Recovery Levy and the Ghana Health Service Disinfection Fee.

He promised that taxes and other charges on the importation of spare parts would be abolished two years into his administration.

Mr. Kyerematen further promised to undertake a comprehensive assessment of the relevance of all other administrative fees, service charges, and levies imposed at the ports will be undertaken.

Bemoaning the plethora of taxes that make doing business difficult in Ghana, the President of GUTA, Dr. Obeng, mentioned 22 different taxes apart from VAT, adding up to nearly 65% of the value of imports.

Moreover, over fourteen state agencies operate in the port, as well as various security agencies. This state of affairs drives up the cost of doing business, making businesses move to other ports, and encouraging unethical practices.

Recognising the level of stress and difficulties faced by the Ghanaian business owner, which is ultimately transferred to the customer, Mr. Kyerematen stressed the importance of easing the business environment for traders as a means of improving the livelihoods of ordinary Ghanaians.

“Until government creates an enabling environment for private sector-led growth, the transformation that we so desire will continue to elude us,” he said.

In another groundbreaking and innovative approach, Alan Kyerematen intimated that a government under his leadership will shift from the current heavy reliance on indirect taxes to direct taxes.

“I will ensure a recalibration of the existing tax regime structure to optimize revenue mobilization from direct taxes (personal and corporate), and reduce over-reliance on indirect taxes (import duties, levies, and charges) to make the corporate sector more competitive and profitable.”

Mr. Kyerematen based his remarks on the plans set out in his Great Transformational Plan (GTP) which seeks to move beyond mere promises of political party manifestoes to actual plans that can deliver the vision of Ghanaians for a prosperous, united, and peaceful Ghana that provides equal opportunities for all, especially young people, women, and other vulnerable groups.

Leave feedback about this

  • Quality
  • Price
  • Service

PROS

+
Add Field

CONS

+
Add Field
Choose Image
Choose Video
×

Radio Tamale WhatsApp Chat

× Chat?