Dr Frank Bannor, a Improvement Economist and Head of Analysis on the Danquah Institute (DI) has famous {that a} key situation highlighted within the NPP’s new manifesto is Dr Bawumia’s dedication to simplifying Ghana’s advanced tax regime to stimulate the nation’s financial progress.
In an interview on France24 information on the doc’s proposed reforms, Dr Bannor famous that the nation’s present tax system is perceived as overly difficult and burdensome for each firms and particular person residents, a problem the NPP goals to deal with head-on.
“Ghana’s tax system will not be solely difficult but additionally a major hindrance to financial progress. For example, it requires companies to rent specialists simply to know their tax obligations by GRA, which pushes some to evade taxes altogether, resulting in a loss in authorities income,” he said.
As a member of the identifiable group throughout the manifesto committee, Dr Bannor revealed that he had held discussions with key stakeholders such because the Ghana Union of Merchants Affiliation (GUTA), the Ghana Nationwide Chamber of Commerce and Business, the Ghana Carages Affiliation, and the Pharmaceutical Society of Ghana.
In accordance with him, the suggestions from these stakeholders constantly highlighted the cumbersome nature of the tax system, which frequently locations undue strain on companies.
Reforming tax structure
Dr Bannor defined that the manifesto proposes a complete overhaul of Ghana’s tax structure, together with the introduction of a simplified flat-rate tax system.
He drew inspiration from Estonia’s profitable implementation of a flat 20% tax fee. He defined that the NPP’s plan seeks to streamline the tax system whereas guaranteeing that companies are incentivized to develop.
“Dr Bawumia’s imaginative and prescient goes past simply taxation; it’s about fostering a extra business-friendly surroundings. The aim is to introduce a progressive tax system that permits companies to thrive earlier than being subjected to heavier taxation,” Dr Bannor said.
Job creation and youth empowerment
Dr Bannor talked about that the manifesto additionally locations a powerful emphasis on job creation, notably for Ghana’s youth. He highlighted plans to equip a million Ghanaians with IT and software-related abilities, making ready them for the alternatives of the fourth industrial revolution.
He confused that this initiative is designed not just for college graduates but additionally for people with primary schooling, guaranteeing that nobody is left behind within the digital transformation.
“Ghana has missed out on earlier industrial revolutions, however we can’t afford to overlook out on the digital age. The imaginative and prescient is to place Ghana as a regional IT hub, very similar to India has develop into a worldwide chief within the tech trade,” Dr Bannor defined.
He indicated that the manifesto additionally proposes reforms to simplify enterprise registration processes, that are at the moment seen as a serious impediment for entrepreneurs. Dr Bannor pointed to Rwanda’s success in making a digitalized, cashless system for enterprise registration, saying the NPP goals to copy this mannequin in Ghana. He believes this reform is anticipated to get rid of bureaucratic hurdles and cut back prices for enterprise house owners.
Digitalisation and anti-corruption efforts
He indicated that digitalisation is one other key focus of the NPP’s manifesto, notably in streamlining authorities operations and decreasing human interplay in transactions. Dr Bannor emphasised that these reforms purpose to create a cashless economic system, which might not solely enhance effectivity but additionally cut back corruption and bureaucratic delays.
“By digitalising authorities companies and selling transparency, we will considerably reduce down on the corruption that has plagued many sectors,” Dr Bannor added. He additional emphasised that the NPP’s manifesto explores alternatives for exporting Ghana’s surplus expertise, notably within the healthcare sector.
Dr Bannor pointed to Kenya’s settlement with Saudi Arabia, the place Kenyan healthcare employees are employed overseas, producing income for the Kenyan authorities whereas assuaging home unemployment.
“One hanging instance of this technique is modeled on an settlement Kenya signed with the federal government of Saudi Arabia. Kenya, which produces a surplus of well being professionals, discovered itself unable to completely take in them into its personal system. As an alternative of permitting this invaluable human useful resource to go underutilised, the Kenyan authorities recognized Saudi Arabia, a rustic with excessive demand for healthcare employees, as a great companion.
“Beneath this settlement, Kenya “exports” its well being professionals, notably nurses, to Saudi Arabia. What’s distinctive in regards to the deal is {that a} portion of the wages these professionals earn whereas working in Saudi Arabia is remitted on to the Kenyan authorities.
That is mutually useful; Kenya alleviates home unemployment whereas producing income, and Saudi Arabia fills crucial staffing shortages. Dr Bawumia’s imaginative and prescient entails comparable collaborations, notably to deal with Ghana’s personal unemployment challenges, particularly in sectors with surplus expertise,” he famous.
Help SMEs
Dr Bannor added the manifesto outlines plans to ascertain a devoted SME financial institution to offer monetary help to small and medium-sized enterprises. Presently, SMEs contribute roughly 80% of jobs in Ghana however face important challenges in accessing finance. He famous that the creation of this financial institution would assist stage the taking part in area, giving entrepreneurs the sources they should develop their companies.
“Not solely will this financial institution present loans tailor-made to SMEs, however it is going to additionally stage the taking part in area for aspiring entrepreneurs. Because of this whether or not you’re employed for a multinational group otherwise you’re a person with an revolutionary thought, you’ll have entry to the sources it is advisable to begin your corporation.
Over the course of two to 3 years, your corporation might develop, permitting you to create jobs for others. This transformative imaginative and prescient is geared toward fostering a thriving SME sector and empowering Ghanaian entrepreneurs,” he said.
He confused that Dr Bawumia advocates a tax credit score system for brand new companies. “He understands that even after getting access to finance, new companies want time to mature. As with nurturing a toddler, the federal government ought to enable these companies a grace interval earlier than anticipating them to contribute closely by way of taxation,” he added.
“He proposes a three-year tax credit score for brand new enterprises, permitting them to reinvest their income into increasing their companies quite than paying taxes throughout their preliminary years of operation. This is not going to solely encourage entrepreneurship but additionally allow companies to rent extra workers, finally benefiting the broader economic system,” Dr Bannor indicated.