Seth Terkper, the former Finance Minister, has responded to Vice President Dr. Mahamudu Bawumia’s proposal for a tax amnesty in the event of winning this year’s presidential elections.
In his address on Wednesday, February 7th, Dr. Bawumia, the New Patriotic Party’s (NPP) flagbearer, stated that “To start the new tax system on a clean slate, my government will provide a tax amnesty, a complete exemption from the payment of taxes for a specified period, and the waiving of interest and penalties for up to a certain year for individuals and businesses for failures to file taxes in previous years so that everyone will start afresh.”
Responding to this on his platform, Mr. Terkper stated, “We had a Tax Amnesty in 2017. To date, no comprehensive report has been presented to Parliament. Yet another Amnesty in 2025?”
In a recent announcement, Dr. Bawumia made it clear that if he were to become President of Ghana, he would eliminate the e-levy, a tax on electronic financial transactions.
This tax, which sparked controversy upon its introduction in 2022, was met with opposition from Vice President Bawumia beforehand, as he voiced his disapproval of levies on electronic financial transactions in an interview.
During his inaugural address to the nation as the NPP flagbearer, Dr. Bawumia reiterated his stance against taxes on electronic financial transactions, stating unequivocally that he would abolish the e-levy if elected President.
Furthermore, Dr. Bawumia emphasized that his vision for a Digital and Cashless Ghana would receive a significant boost with the abolition of the e-levy.
“To move towards a cashless economy, however, we have to encourage the population to use electronic channels payment. To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will therefore be abolished,” he declared at the UPSA auditorium on February 7.
Dr. Bawumia additionally revealed plans for a revamped tax system under his administration, which would include the abolition of the emission tax, betting tax, and potentially the proposed 15% VAT on electricity tariffs, should it still be in effect by January 2025.
Furthermore, he outlined the introduction of a more favorable flat tax regime under his administration aimed at benefiting individuals and businesses, with a particular focus on supporting small and medium-scale enterprises (SMEs) in Ghana.
“My administration will introduce a very simple, citizen and business-friendly flat tax regime. A flat tax of a percentage of income for individuals and SMEs, which constitute 98% of all businesses in Ghana, with appropriate exemption thresholds set to protect the poor,” Dr. Bawumia indicated.
