Ghana will have the lowest tax rate in ECOWAS under my presidency – Alan Kyerematen
Alan Kyerematen
Alan Kyerematen, the founder and leader of the Movement for Change, has pledged to eliminate several import taxes that he deems unnecessary and burdensome for traders, aiming to position Ghana with the lowest tax rate regime in the ECOWAS subregion.
Read full articleAddressing members of the Ghana Union of Traders Association (GUTA), Kyerematen outlined a series of tax reforms aimed at reducing the tax burden on Ghanaians, particularly on imports. Immediate measures include consolidating NHIL & GETFund levies at ports into a new VAT rate, and abolishing the Special Import Levy, COVID-19 Health Recovery Levy, and Ghana Health Service Disinfection Fee.
“Under my presidency, Ghana will have the lowest tax rate regime in ECOWAS,” he said.
Additionally, Kyerematen promised to abolish taxes on spare parts importation within two years of his administration and conduct a comprehensive assessment of all other administrative fees and levies at ports.
Dr. Obeng, President of GUTA, highlighted the multitude of taxes apart from VAT, which collectively represent nearly 65% of import value, making business operations challenging. He also noted the presence of over fourteen state agencies and various security agencies at ports, driving up costs and encouraging unethical practices.
Recognizing the strain on Ghanaian businesses and the resultant impact on consumers, Kyerematen emphasized the importance of improving the business environment to uplift livelihoods.
Kyerematen also proposed shifting from heavy reliance on indirect taxes to direct taxes, aiming to optimize revenue mobilization and enhance corporate sector competitiveness and profitability.
"I will ensure a recalibration of the existing tax regime structure to optimize revenue mobilization from direct taxes (personal and corporate), and reduce over-reliance on indirect taxes (import duties, levies, and charges) to make the corporate sector more competitive and profitable," he said.
