Bawumia’s one-time tax amnesty a good idea for businesses – GUTA

The Head of the Business and Economic Bureau of the Ghana Union of Traders’ Associations (GUTA), Charles Kusi Appiah Kubi, has welcomed the pledge by the New Patriotic Party (NPP) flagbearer, Dr Mahamudu Bawumia to introduce a one-time tax amnesty policy as part of a broader reform of the country’s tax system should he emerge President in the December polls.

According to him, it will ease the tax burden on businesses and reduce the evasion of taxes.

This comes after the NPP flagbearer, Dr Mahamudu Bawumia assured businesses of tax amnesty in 2025 if he wins the December 2024 presidential elections.

According to him, the country’s current tax structure is not fit for purpose, and he therefore wants the tax system to change.

“We will accelerate Ghana’s growth into a world-class digital economy and make Ghana the digital hub of Africa. We will do this through policies, competitive incentives and investments. We will invest in developing local talent and tech start-ups and abolish E-Levy.

“[We’ll] Implement wide-ranging tax reform, and offer a one-time tax amnesty to all Ghanaians and corporate entities through tax amnesty from the payment of taxes from the previous years. The waiving of interest and penalties for failures to file taxes in previous years. This will enable everyone to start their tax journey afresh.

Speaking in an interview on August 19, Mr Kubi noted that the tax amnesty could encourage more businesses to come forward and fulfil their tax obligations.

“If you are going to give businesses tax amnesty, it is going to open the floodgates for every business to come on board and pay taxes that will reduce the tax burden that has been on the few identified businesses in the country.”

M Kubi added that the existing VAT system has created disparities and undermined the principle of fairness in taxation. He argued that the current structure leads to tax avoidance and evasion due to its complexity.

“A lot of people are avoiding and evading taxes because of the structure and the non-compelling compliance of the current taxes. So, if it’s going to harmonise the tax system to ensure flat rate it’s good news for us,” he said.