Bawumia’s flat tax system is scam for political power – Importers and Exporters Association

Importers have for long complained about port charges, calling on the government to come to their aid.

However, recent comments by the flagbearer of the NPP, Dr. Bawumia, have been met with mixed reactions from industry experts and economic analysts, raising questions about the feasibility and equity of such a policy aimed at reviving Ghana’s tax system.

During a visit to Suame Magazine in Kumasi on his Ashanti region tour, he addressed spare parts dealers, acknowledging the widespread concerns about the current tax structure and unveiling his plan for a flat tax system.Dr Bawumia said, “Ghana, our tax system is problematic just as the businessmen are complaining. So, I want to introduce a new tax system. This new tax system is called the flat tax system which is like the tithe you pay in church. If it is 10%, it is 10% for everyone.

“So, by 2025, we are going to begin the implementation of a new flat tax system for Ghana.”

He added “We will cut off every tax the GRA would have made you pay in 2025 so that we all start from ground zero. Tax amnesty in 2025,” he assured.However, some industry players, like the Executive Secretary of the Importers and Exporters Association, Sampson Asaki Awingobit, believe the comment from Dr. Bawumia was made purely for political capital.

According to the business man, “this is not the first time the vice president has made sweet statements, coming from the vice president I think it is total scam. He just wants to sway us.”He added “he cannot make it happen, because we are currently under ECOWAS common external tariff (CET) and an IMF program with conditionalities, So there is no way he is going to do anything to reduce revenue for government.”

Sampson says there are other avenues that can be used to reduce the plight of importers which the NPP flagbearer has decided to ignore.

For tax policy analyst Geoffrey Ocansey, although the policy could have immediate benefits, it would have long-term implications for the country’s economy.

“It is a regressive an approach to your economy, you are flooding your market with foreign products, your local industry will be crippled then people will lose their jobs, government revenue will eventually shrink,” he said

He added the policy is recessive form of taxation that would create imbalances among importers.The debate continues as stakeholders weigh the potential impact of this proposed tax overhaul.