Economist Dr. Owusu Adu Sarkodie has stated that the proposal by NPP flagbearer, Dr. Mahamudu Bawumia, to eliminate specific taxes if elected president is feasible.
Dr. Bawumia outlined this initiative, among other plans, in his vision statement delivered in Accra on Wednesday, expressing his intention to abolish the E-levy, emissions tax, VAT on electricity, and the betting tax.
During an interview with Nana Tuffuor Boateng on The Big Issue on Saturday, Dr. Adu-Sarkodie indicated that Dr. Bawumia’s plan reflects a consideration of the concerns voiced by Ghanaians.
He acknowledged that the New Patriotic Party (NPP) government had previously abolished taxes in 2017 upon assuming power. Dr. Adu-Sarkodie emphasized the importance of having a contingency plan to mitigate potential revenue losses, a factor he felt was lacking in the previous tax abolishment.
“I think that they have done something similar before. In 2017 when they came, we were still under an IMF programme and they still abolished many taxes. What we didn’t see in that budget was a contingency plan to make sure that the government doesn’t lose on revenue generation. So I think they may have learnt from their mistakes and that even if they succeed to abolish the taxes they must have a contingency plan so that we can raise enough revenue.”
“So yes it is feasible. It shows that they have listened to Ghanaians. I listened to the GUTA president and he was so happy about the speech because he said that these are the very things they have been asking the government to do for them. So with respect to having an efficient tax regime which comes with a flat rate and compliance, etc. I was also happy that Dr Bawumia listened to a number of Ghanaians who called for the abolishment of E-levy.”
Meanwhile, the government has officially suspended the planned implementation of the 15% Value Added Tax (VAT) on domestic electricity consumption.
The Ministry of Finance directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to halt the levy’s charging.
The suspension aims to facilitate extensive dialogue and obtain input from industry players and labor unions due to concerns about its impact on consumers and businesses.
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