Abossey Okai Spare Parts dealers are expressing their disagreement with the proposed flat rate system that would be introduced by Dr. Mahamudu Bawumia, the flagbearer of the governing New Patriotic Party (NPP), should he win the presidential election.
Dr. Mahamudu Bawumia, currently serving as the Vice President, has pledged to implement a straightforward flat tax regime that is favorable for both citizens and businesses once he assumes office.
During his address at the University of Professional Studies, Accra (UPSA) on Wednesday, February 7, Bawumia stated that his administration would grant tax amnesty to individuals and businesses for a specified period, aiming to simplify the tax system and foster economic growth.
“My administration will introduce a very simple, citizen and business-friendly flat tax regime. A flat tax of a % of income for individuals and SMEs (which constitute 98% of all businesses in Ghana) with appropriate exemption thresholds set to protect the poor.”
“With the new tax regime, the tax return should be able to be completed in minutes! We will also simplify our complicated corporate tax system and VAT regime,” he said.
However, Takyi Addo, the Head of Communications for the Abossey Okai Spare Parts Dealers Association, expressed in an interview with Morning Show Host Daakyehene Ofosu Agyemang on New York-based Adinkra Radio that Dr. Bawumia’s proposed flat rate regime would not serve the best interests of importers.
“Vice President Bawumia invited us the leadership to the Jubilee House and we made him aware of our concerns about high duty rate on items we import. We suggested that he should make duty fixed rate. With this one, the rate is constant. When you import items you don’t have any problem with exchange rate, you have no problem with a customs officer, you pay for the items and then you clear them. But Veep Bawumia says he will introduce Flat rate and we don’t want that. With the Flat rate, it is based on percentage.”
“Mahama has promised to introduce fixed rate, if this is implemented one problem traders face at the Port which is demurrage will be solved. Every year, the amount of money we lose to shipping lines through demurrage is about $85million. This is due to negligence of a government. Alan Kyerematen, a trade expert has also promised to introduce fixed rate for us when he’s elected President and that will greatly help us traders. The more importers bring in items, the more money the government makes. A fixed-rate regime is the way to go, that is what importers want.”