Vice President Dr. Mahamudu Bawumia, the New Patriotic Party (NPP) flag bearer, has outlined a comprehensive economic reform plan aimed at transforming Ghana’s economy.
Addressing the gathering during the launch of the party’s manifesto in Takoradi on Sunday, Dr. Bawumia emphasized the need for a paradigm shift in the country’s economic management, focusing on private sector participation, procurement reform, and tax system overhaul.
The NPP flag bearer stressed that the current economic burden on the budget can be alleviated by making it more attractive for the private sector to finance construction, management, and maintenance of roads through Public-Private Partnership (PPP) concessions.
He also highlighted the need to change the procurement culture drastically to tackle waste and corruption, proposing a move towards leasing rather than outright purchase of goods.
“With this approach, the budget can save very significant amounts in outright cash expenditure annually from various items across different ministries, departments, and agencies,” Dr. Mahamudu Bawumia explained.
Furthermore, Dr. Bawumia emphasized the need for tax reform, citing estimates that revenues amounting to 13% of GDP or some 150 billion Ghana cedis in 2023 are not collected due to individuals and businesses being outside the tax net.
He proposed a simple, citizen-friendly, and business-friendly flat tax system, which would be the first change in the tax system since independence.
“A flat tax system will be of a percentage of income for individuals and businesses with appropriate exemption thresholds set to protect the poor,” Dr. Bawumia said.
He also promised to simplify the complicated corporate tax system and VAT regime, introducing a tax amnesty to provide a clean slate for individuals and businesses. “Our ultimate goal is to move Ghana to a lower tax regime with broader coverage to stimulate greater economic activity and generate more revenue for the state,” the NPP flag bearer concluded.
Source: Ghana/Starrfm.com.gh/103.5FM/Candy Nana Esi Arthur
