Vice President and NPP President candidate, Dr. Mahamudu Bawumia, has reaffirmed his commitment to fostering a business-friendly economic environment to empower the private sector to drive economic transformation under his leadership.
Speaking at a special dinner last night with CEOs and other key private sector leaders, who had gathered to engage with presidential candidates of the NDC and NPP, Dr. Bawumia emphasized the indispensable role of the private sector in economic growth.
He underscored that sustainable growth and economic prosperity are achievable only when the private sector is thriving.
“When businesses do well, the economy does well, and vice versa. Show me a buoyant national economy in any part of the world and I’ll show you strong and resilient businesses behind it,”Dr. Bawumia said, reaffirming his strong desire to implement what he called bold solutions to help the sustainable growth of businesses and the private sector”.
“My vision for Ghana is to implement bold innovative solutions to ensure sustainable development” he added.
Another key element of Dr. Bawumia’s agenda is his commitment to advancing digital transformation within the business sector.
He emphasized the importance of adopting modern technologies to streamline operations, improve efficiency, and enhance transparency.
Dr. Bawumia believes that a robust digital infrastructure will not only ease business processes but also attract more foreign investments, ultimately boosting Ghana’s competitiveness on a global scale.
I know many of you in this room are eager to take advantage of the economic recovery to build back up your enterprise,” Dr. Bawumia said.
“Yet, you may also be struggling with a big tax burden and huge penalties slapped on top of your tax arrears. Many of you are spending precious time that can be used productively, going back and forth with revenue officers, over disagreements on what may be owed.”
“I want to relieve you of that headache. If elected, I will do so by introducing a radically new tax system, beginning in 2025,”
Below are Bawumia’s steps to revive businesses:
a. Tax Amnesty
“My government will provide a total tax amnesty (i.e. a complete exemption from the payment of prior taxes due and the waiving of all associated interest and penalties) to individuals and businesses who failed to file taxes in previous years,” Dr Bawumia said.
The intention, like all amnesties, is not to reward bad behaviour but, rather, to give the beneficiaries a fresh start. In return, my government will expect all those who benefit from this most significant gesture to invest such savings directly into creating jobs and growing their business.
b. Flat Tax Rate
“From all my interactions with taxpayers, what you want is a tax regime that is easy to understand, easy to comply with, easy to enforce, softer on the taxpayer and, certainly, not dependent on the discretion of the tax collector. I pledge to give you exactly what you want,” Dr. Bawumia assured the CEOs.
” My government will introduce a flat tax of a percentage of income for individuals and businesses with appropriate exemption thresholds set to protect the poor. We will simplify the corporate tax system. We will reform the Value Added Tax regime by merging all levies into a single line-item levy and treat the merged levy as part of input and output VAT. The new system should allow you to complete your tax return in minutes.”
c. Electronic filing of taxes for efficiency
“Also, everyone will be required to file a very simple tax return electronically. E-invoicing, as being implemented by the GRA will be extended to all companies. There will be no manual or paper filing of taxes. The sight of GRA officers stationed on factory and shop floors will soon be history, ”
” Faceless assessments will provide transparency and accountability and enhance the fight against corruption and the push for greater compliance,”
d. Empower the private sector to undertake public infrastructure projects. “A Bawumia Presidency will encourage and empower the private sector to finance, build, and rent or lease-to-own to the government a vast number of public infrastructure, from schools to homes, and from roads to equipment and vehicles.”
“Let me emphasise, my government will be for business. All I ask is for business to be with me. A Bawumia Presidency will encourage and empower the private sector to finance, build, and rent or lease-to-own to the government a vast number of public infrastructure, from schools to homes, and from roads to equipment and vehicles.”
‘We recognise the primacy of government spending in enhancing growth, and my government will be deliberate in directing this significant government power to the private sector. By leveraging the purchasing power of government and channelling it towards the private sector, Ghanaian businesses will have a stable and increased pipeline of projects and revenues, based on which they will create jobs and services.”
“My government will facilitate structured long-term financing and payment options to support it. This will also lead to efficiency gains by cutting waste, and corruption and ensuring value for money in procurement.
My focus is to find solutions and not to echo problems, repeatedly In other to achieve the above, Dr. Bawumia proposed the following:
i. Increase Public-Private-Partnerships (PPPs)as an important financing model for delivering public infrastructure projects, including schools, housing, water, and roads
ii Cut 3% of GDP from government expenditure (GH₵30 billion), and redirect it towards private sectorprovision of public infrastructure and services, as earlier stated.
iii. leverage the government’s purchasing power to stimulate industrial expansion and business growth with a strict “Buy Ghana First” policy, under which all goods and services procured by the public sector will first be sourced from local producers or service providers iv. establish an SME Bankto meet the special financing needs of small and medium businesses, which employ over 80% ofGhanaians, especially women.
v. set up a Women’s Trade Empowerment Fund to support women-owned businesses with funds for expansion and working capital.
vi. offer start-up companies Investment Tax Credits (ITC) for the first three (3) years of their operations.
vii. make the cost of electricity cheaper for industries by making commercial tariffs equal to or lower than residential rates viii. introduce a flat rate system of duties for all importers.
ix. lower port charges to compete with charges in regional ports, particularly, Lome, and Togo.
x. Today, we made history when I launched the first individualised credit scoring regime in Ghana, MyCredit Score. We are going to use the Credit Scoring System to enable the average Ghanaian to buy on credit: “Buy now, pay small, small”.This will increase domestic demand, increase production and create jobs.
xi.Establish a Fintech Fund with a seed capital of US$100 to attract additional private sector funding to support Ghanaian start-ups developing payments and financial services solutions.
xii.provideventure funding and grant support for commercially viable tech projects by Ghanaian start-upsto drive innovation, foster high-tech entrepreneurship, create jobs, and grow Ghanaian high-tech businesses, and
xiii. complete the digitalisation of land titling and registration to allow owners of landed properties to use their assets to raise capital for business growth and expansion.
Having listed his vision to help the private sector thrive, Dr Bawumia assured the CEOs of his commitment towards sustainable development for the private sector.
“My vision for Ghana is to implement bold innovative solutions to ensure sustainable development. Beware of those seeking short-term mandates and promising quick fixes. They don’t last.” “Sustainable development is not an alternative, it is our only option. In Ghana, 73% of the population is 0 to 35 years old. This means that about seven in ten Ghanaians are children and young people.
The present and future generations are counting on us for quality and more affordable education. They are counting on us for improved health services, peace and security, reliable food supply, asafe environment, clean water, and above all sustainable jobs and economic prosperity.”