President-elect John Mahama has defended his intention to eliminate certain taxes he deems unnecessary, emphasizing that his administration will address revenue shortfalls through expenditure cuts and by broadening the tax base. In an interview with the Global South World News Network, he highlighted the importance of a simplified tax system to enhance compliance and ease of calculation.
Mahama pledged to simplify the Value Added Tax (VAT) system and improve its collection by leveraging Point of Sale (POS) devices to ensure greater transparency. He also outlined plans for fiscal reforms aimed at reducing expenditure and increasing revenue without introducing new taxes. Instead, his government will focus on strategic borrowing and exploring non-tax revenue sources to stabilize the economy.
“We will cut spending by maintaining a lean government with fewer ministers. The e-levy and other burdensome taxes on businesses and households will be abolished. Our government will not subject Ghanaians to constant tax audits or harassment from the Economic and Organized Crime Office,” Mahama stated.
As part of his proposed VAT reforms, Mahama committed to providing relief for households and businesses. He plans to reverse the separation of the GETFund and NHIL components from VAT, raise the VAT registration threshold to exclude micro and small businesses, and repeal the VAT law on domestic electricity consumption.
The incoming National Democratic Congress (NDC) administration will also implement an Economic Transformation Agenda, focusing on agriculture and value addition. Other priorities include enforcing fiscal responsibility measures, restructuring the Bank of Ghana, and investigating the economic policies of the outgoing New Patriotic Party (NPP) government, including its Gold-for-Oil initiative.
John Mahama will officially take office as president on January 7, 2025, after winning the 2024 general elections with 6,328,397 votes, representing 56.55%. His closest opponent, Dr. Mahamudu Bawumia of the NPP, received 4,657,304 votes, or 41.61%.
Source: TheDotNews