By Adu Koranteng
The Member of Parliament for Dormaa East, Paul Apraku Twum Barimah has indicated that the decision by the Vice President, Dr Mahamudu Bawumia to introduce a flat rate regime in the next NPP government will be the game changer and help to reduce cost of doing business.
He noted that the flat rate tax system will simplify the tax regime and bring relief to business operators, and importers
According to Paul Twum Barimah, the flat tax rate will be a percentage of income for individuals and Small and Medium Enterprises SMEs (which constitute 98% of all businesses in Ghana) with appropriate exemption thresholds set to protect the poor.
He stated that the new tax regime would ensure that tax returns are completed in minutes and also simplify all the complicated corporate tax system and VAT regime.
In a recent interaction with the Ghana Union of Traders Association (GUTA), Dr Bawumia stated that he would Also abolish the tax on electronic financial transactions, popularly known as e-levy if elected President of Ghana.
The controversial tax was introduced in 2022, and before the introduction, Vice President Bawumia had declared his opposition to levies on electronic financial transactions in an interview on peace fm.
Dr Bawumia minced no words in declaring his opposition to taxes on electronic financial transactions, declaring that he would abolish e-levy as President.
Dr Bawumia added that his bid for a digital and cashless Ghana would be significantly boosted if e-levy is abolished.
Dr Bawumia also announced that as part of a new tax regime by his government, he will also abolish the emission tax, tax on betting as well as the proposed 15% VAT on electricity tariffs, if it is in existence by January 2025.