Founder and leader of the Movement for Change, Alan Kyerematen has committed to eliminating numerous import taxes that he deems excessive and burdensome to traders.
During a meeting with members of the Ghana Union of Traders Association (GUTA), Mr. Kyerematen promised that removing these taxes and levies would position Ghana as the nation with the most favorable tax environment in the ECOWAS subregion.
“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 pledged to abolish taxes and charges on the importation of spare parts within the first two years of his presidency. Additionally, Mr. Kyerematen vowed to conduct a thorough evaluation of all administrative fees, service charges, and levies levied at the ports.
Highlighting the challenges of doing business in Ghana, Dr. Obeng, the President of GUTA, cited 22 different taxes, aside from VAT, totaling nearly 65% of import values. Furthermore, he noted the presence of over fourteen state agencies and multiple security agencies operating at the port, leading to increased business costs, diversion of trade to other ports, and fostering unethical practices.
Acknowledging the strain faced by Ghanaian business owners, which ultimately affects consumers, Mr. Kyerematen emphasized the need to streamline the business environment to enhance the lives of ordinary 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 groundbreaking and innovative approach, Alan Kyerematen intimated that a government under his leadership will shift from the current heavy reliance on indirect taxes to 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 based his remarks on the plans set out in his Great Transformational Plan (GTP) which seeks to move beyond mere promises of political party manifestoes to actual plans that can deliver the vision of Ghanaians for a prosperous, united, and peaceful Ghana that provides equal opportunities for all, especially young people, women, and other vulnerable groups.