Vice President Dr Mahamudu Bawumia has listed four taxes his future government will eliminate in 2025.
They include the infamous Electronic Transfer Levy known as E-levy, Value Added Tax (VAT) on electricity, the 10% withholding tax on betting and the emissions tax.
He noted that his proposed policies and the new tax regime for the country will not require the continuous implementation of these taxes and thereby their elimination.
“With cuts in government expenditure, the private sector undertaking expenditure that would normally be done by government and the new tax regime that will enhance compliance, broaden the tax base, and increase tax revenue, the situation we are going to face in 2025 is going to be very different from the situation we faced in 2020 and 2022.
“With the policy measures implemented thus far, we have outperformed the IMF fiscal deficit target of 5% of GDP by attaining a fiscal deficit of 4.2% in 2023. The new policies that I am proposing to implement in 2025 will give us the fiscal space to eliminate some taxes such as the VAT on electricity (if still on the books), the emissions tax and the betting tax without compromising our deficit target.”
Dr. Bawumia posited that the current tax regime, which has existed since independence, has failed the country. He plans to introduce digitalized flat tax regimes with appropriate exemption thresholds set to protect the poor.
He also proposed incentivizing the private sector to complement the government in the provision of infrastructure and other services to reduce government expenditure and improve maintenance. This is a way he plans to lessen the fiscal burden on the government by leveraging the private sector.
He highlighted, “As Vice-President I am like a driver’s mate. But if, by the Grace of God, you make me President, I will be in the driver’s seat with constitutionally mandated authority to pursue my vision and my priorities.”
The 2024 Flagbearer of the New Patriotic Party (NPP) made this known at the University of Professional Studies, Accra (UPSA) on February 7 when he outlined his objectives for the country in the quest to win the Presidential elections.