GUTA, AGI give thumbs up to Bawumia’s policy proposals
By Selorm GBORBIDZI, Accra
The President of the Ghana Union of Traders’ Association (GUTA), Dr. Joseph Obeng, has welcomed several policy initiatives unveiled by Vice President Dr. Mahamudu Bawumia in his recent address to the nation, dubbed ‘Bawumia Speaks.’
Expressing his thoughts on the Vice President’s proposals, Dr. Obeng was particularly enthusiastic about the ideas concerning reduced taxation and revenue enhancement.
He emphasized the importance of ensuring increased tax compliance through the simplification and affordability of the tax system, especially with the implementation of the flat tax rate regime.
In an interview with The New Finder, Dr. Obeng conveyed his excitement about the focus on using compliance as a measure to enhance revenue collection, describing it as crucial for the country.
He expressed optimism that this new revenue generation regime would improve the relationship between businesses and tax authorities by eliminating suspicion.
Dr. Obeng also welcomed the intention to grant tax amnesty to defaulting institutions, believing it would incentivize businesses to fulfill their tax obligations, benefiting the state’s revenue.
Meanwhile, President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim-Darke, endorsed the Vice-President’s intention to review the tax structure and remove some existing taxes, which he deemed insignificant but burdensome to citizens. Taxes set to be removed include the electronic transfer levy (e-levy), the 10% tax on betting and gaming, and the vehicle emissions levy.
Dr. Ayim-Darke highlighted concerns about the structure of the Value-Added Tax (VAT), emphasizing the need for reforms to address cascading effects and streamline taxation.
He expressed high expectations for normalization once these issues are addressed.
Additionally, Dr. Ayim-Darke welcomed the prospects of a future Bawumia-led government harmonizing operations between the Tema and Lome Ports to remove levies and charges currently imposed on importers and traders.
However, he called for further structural reforms to strengthen the country’s macroeconomic stability.
The positive reception of Dr. Bawumia’s policy proposals by GUTA and AGI underscores the importance of taxation and regulatory reforms in fostering business growth and economic development in Ghana.
As stakeholders await further developments, there is optimism that these initiatives will contribute to a more conducive business environment and sustainable economic progress.
