Alan Kyerematen, the founder and leader of the Movement for Change, has promised to eliminate numerous import taxes that he deems unnecessary and overly burdensome for the trading community.
He made this commitment during a meeting with members of the Ghana Union of Traders Association (GUTA).
He emphasized that by eliminating these taxes and levies, Ghana would have the most competitive tax regime among ECOWAS countries.
“Under my presidency, Ghana will have the lowest tax rate regime in ECOWAS,” he said.
Outlining a raft of radical tax measures to realign and reduce the burden of taxes on Ghanaians, especially on imports, Mr. Kyerematen said immediate measures will include consolidating the existing NHIL & GETFund levies at the ports into the calculation of a new VAT rate, and the abolition of the Special Import Levy of 2%, COVID-19 Health Recovery Levy and the Ghana Health Service Disinfection Fee.
He promised that taxes and other charges on the importation of spare parts would be abolished two years into his administration.
Mr. Kyerematen further promised to undertake a comprehensive assessment of the relevance of all other administrative fees, service charges, and levies imposed at the ports will be undertaken.
Bemoaning the plethora of taxes that make doing business difficult in Ghana, the President of GUTA, Dr. Obeng, mentioned 22 different taxes apart from VAT, adding up to nearly 65% of the value of imports.
Moreover, over fourteen state agencies operate in the port, as well as various security agencies. This state of affairs drives up the cost of doing business, making businesses move to other ports, and encouraging unethical practices.
Acknowledging the challenges and strain experienced by Ghanaian business owners, which inevitably affects consumers, Mr. Kyerematen emphasized the significance of enhancing the business environment for traders to enhance the quality of life for everyday Ghanaians.
“Until government creates an enabling environment for private sector-led growth, the transformation that we so desire will continue to elude us,” he said.
In another pioneering and innovative initiative, Alan Kyerematen suggested that a government led by him will transition away from the current heavy dependence on indirect taxes towards direct taxes.
“I will ensure a recalibration of the existing tax regime structure to optimize revenue mobilization from direct taxes (personal and corporate), and reduce over-reliance on indirect taxes (import duties, levies, and charges) to make the corporate sector more competitive and profitable.”
Mr. Kyerematen’s statements are rooted in the objectives outlined in his Great Transformational Plan (GTP). This plan aims to transcend traditional political party manifestos by offering concrete strategies capable of realizing Ghanaians’ vision for a prosperous, unified, and peaceful nation that offers equitable opportunities for everyone, particularly youth, women, and other vulnerable demographics.
