I Will Abolish E-levy, Betting Tax As President – Bawumia
In a recent address to the nation, Vice President Dr. Mahamudu Bawumia outlined a comprehensive strategy to revamp Ghana’s taxation system and eliminate the controversial e-levy. His proposals aim to foster economic growth, encourage digital innovation, and alleviate financial burdens on businesses and individuals.
Dr. Bawumia reaffirmed his opposition to the e-levy, a tax on electronic financial transactions introduced in 2022. He pledged to remove this levy if elected president, emphasizing the importance of promoting digital payments and transitioning towards a cashless economy. This move aligns with his vision to facilitate greater financial inclusion and modernize Ghana’s payment infrastructure.
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Recognizing the potential of digital payments to drive economic progress, Dr. Bawumia announced plans to incentivize their use by eliminating taxes on such transactions. By removing barriers to digital payments, he aims to encourage individuals and businesses to adopt electronic channels for financial transactions, thereby reducing reliance on cash and enhancing efficiency.
In addition to abolishing the e-levy, Dr. Bawumia unveiled a series of tax reforms designed to simplify the tax system and stimulate economic activity. This includes the elimination of other taxes such as the emission tax and tax on betting, which contribute to the overall tax burden faced by businesses and consumers. By reducing unnecessary taxes, Dr. Bawumia seeks to create a more conducive environment for investment and entrepreneurship.
Addressing concerns about the proposed 15% VAT on electricity tariffs, Dr. Bawumia committed to abolishing this tax if it is implemented by January 2025. This measure aims to alleviate the financial strain on households and businesses, particularly in the face of rising energy costs. By lowering VAT on electricity, Dr. Bawumia aims to enhance affordability and support economic growth across various sectors.
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To further simplify taxation and support small and medium-scale enterprises (SMEs), Dr. Bawumia proposed the introduction of a flat tax regime. Under this system, both individuals and SMEs would be subject to a flat percentage of income tax, with appropriate exemptions to protect low-income earners. This streamlined approach to taxation aims to reduce compliance costs for businesses and promote entrepreneurship.
Dr. Bawumia’s ambitious tax reform agenda represents a concerted effort to promote economic development, financial inclusion, and business growth in Ghana. By abolishing the e-levy, simplifying the tax system, and supporting digital payments, he seeks to create a more equitable and prosperous future for all citizens.