Dr. Palgrave Boakye-Danquah, a staunch NPP loyalist, has commended Dr. Mahamudu Bawumia’s stance on taxation in Ghana, highlighting the Vice President’s proposal to abolish the E-Levy and Bet Tax.
He noted that Bawumia’s approach was not made in isolation but was part of a broader strategy for tax reform.
Boakye-Danquah’s remarks come in the wake of criticism directed at President-elect John Mahama by NPP members for reiterating his campaign pledge to scrap what he described as “burdensome taxes” introduced by the incumbent NPP administration.
“[Dr. Bawumia proposed] the Tax Amnesty Programme [which] offers a one-time tax amnesty to waive past taxes, penalties, and interest; Value Added Tax (VAT) Reform which merges all VAT levies into a single line-item levy and introduces sunset clauses for exemptions.
“Excise Tax Review which simplifies excise tax to reduce evasion and enhance revenue collection; Digitisation of Tax Administration which uses technology for electronic filing, automated assessments, and expanded e-invoicing”.
Dr. Palgrave Boakye-Danquah
According to Boakye-Danquah, Dr. Bawumia’s taxation reform agenda includes revenue mobilization measures such as the introduction of a Flat Rate Tax System.
He explained that this system, modeled after Estonia’s successful tax framework, aims to simplify tax administration and compliance, making it easier for individuals and businesses to fulfill their tax obligations.
This, he argued, would create a fairer and more efficient taxation system while promoting economic growth.
The NPP enthusiast further highlighted that Dr. Mahamudu Bawumia had proposed significant reforms to Port Charges and Import Duties as part of his broader tax reform agenda.
According to Boakye-Danquah, the proposal aimed to harmonize port charges to align with those of regional competitors, making Ghana’s ports more competitive within the sub-region.
He explained that the plan also included the adoption of flat rates for importers, a move intended to simplify the import process, reduce the cost of doing business, and enhance trade facilitation.
These measures, he argued, were designed to make Ghana’s ports a preferred hub for regional trade and boost the country’s economic competitiveness.
Bawumia’s Plan to Broaden Tax Base Lauded
Furthermore, Palgrave Boakye-Danquah highlighted that Vice President Dr. Mahamudu Bawumia had a strategic plan to improve Ghana’s taxation system by broadening the tax base.
This approach, he explained, aimed to leverage digitalization to formalize the informal sector and expand tax coverage.
Boakye-Danquah emphasized that the informal sector, which constitutes a significant portion of Ghana’s economy, has traditionally remained outside the formal tax net.
Accordingly, by using digital tools and technology-driven solutions, Dr. Bawumia sought to bring more businesses and individuals from the informal sector into the formal economy.
This would enable the government to capture untapped revenue streams, reduce the reliance on a narrow taxpayer base, and ensure a more equitable distribution of the tax burden.
“[Dr. Bawumia’s measures include the Minerals Development Bank which involves establishing a dedicated bank to finance local mineral projects and small-scale mining activities; Resource Revenue from the Extractive Sector to improve resource revenue collection through better auditing and fiscal regime reforms.
“Gold for Oil and Gold Purchase Programmes to expand initiatives to stabilize forex reserves and support the economy”.
Dr. Palgrave Boakye-Danquah
He highlighted that the Vice President also proposed measures to enhance revenue mobilization through two key initiatives thus, Property Tax Strengthening and Investment Tax Credits for Start-Ups.
According to him, the Property Tax Strengthening initiative aims to streamline and improve the assessment and collection of property taxes.
Boakye-Danquah indicated that in addition, the Vice President proposed the introduction of Investment Tax Credits for Start-Ups, which would offer tax relief to strategic start-up businesses during their first three years of operation.
This policy, he explained, is intended to ease the financial burden on young businesses, promote entrepreneurship, and support the growth of Ghana’s start-up ecosystem.
These proposed reforms, he noted, reflect a broader effort to modernize Ghana’s taxation system, support business growth, and create a more sustainable revenue mobilization framework.
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