Bawumia promises to cut government expenditure by 3% and introduce flat rate system

Dr Mahamudu Bawumia, flagbearer of the New Patriotic Party (NPP) has reiterated his intention to implementing a flat-rate tax system in Ghana, comparable to the Estonian model.

Accordonf to him, this will make tax administration easier by giving taxpayers visibility into their tax liabilities.

Speaking at the launch of the NPP Manifesto in Takoradi on August 18, 2024, the Bawumia explained that a single rate will make it easier for firms to file and pay their taxes, resulting in increased growth.

Dr. Bawumia also promised to slash government spending by 3% of GDP if elected in the 2024 general elections.

[We will] support businesses to drive and accelerate job creation by cutting 3% of GDP from government expenditure (~GH₵30 billion), and redirecting it towards private sector provision of public infrastructure and services. Using our tried and tested gold purchase programme to stabilise the currency, give businesses and industries predictability in planning, and ensure stability in input prices.

“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," he stated. 

Source: Lead News Online